SBP moves against fake calls to bank customers

Banks will first block requested bank account, then extract details of fraud

KARACHI:

Pakistan’s central bank has asked commercial and microfinance banks (MFBs) to move against rising incidents of fake calls and financial frauds through digital channels being experienced by their customers as complaints of such frauds have increased with the passage of time.

Customers are allowed to contact call centres of their respective banks through registered or unregistered phone numbers to get their debit and credit cards and/ or accounts blocked in an attempt to escape these kinds of frauds.

Banks will first block the requested bank account, then extract details of the fraud and conduct enhanced verification from customers, stated a notification of the State Bank of Pakistan (SBP) on Friday.

“Banks/MFBs are advised to implement…measures within 30 days from the issuance of this circular,” it said.

A number of bank customers have complained about losing money after they provided their confidential details such as online banking passwords or PIN codes of credit and debit cards to scammers through fraudulent e-mails and phone calls.

Usually, such callers threaten to block bank accounts and credit cards of bank customers if they fail to provide the required details.

 These callers also offer prize money or use other tactics to gain access to secret information, it was learnt.

“Banks/MFBs are advised to ensure that call centre agents are sufficiently trained to handle calls received for reporting digital banking frauds,” the SBP notification read.

“They must be capable of identifying attempted digital banking frauds related calls when a naive customer, unaware of the fraudulent attempt, reports such instances.”

“Banks/MFBs will report the relevant information to PTA (Pakistan Telecommunication Authority) for blocking SIM/ device that a fraudster used for committing/attempting digital banking fraud as soon as it is identified,” the SBP notification read. In order to unblock the account/continue services, the banks and microfinance banks will guide the customers as per their relevant policies, it said.

The central bank said that, in collaboration with other stakeholders, it has initiated various measures to curtail digital banking frauds committed by employing social engineering tactics including fake calls.

In order to successfully design and deploy additional measures, it is vital to have sufficient information about these frauds. In this regard, two standardised formats have been developed to record information related to attempted call frauds.

At the time of receiving calls from customers for reporting of frauds, agents at call centres of all banks/MFBs will record the information.

Banks/MFBs will report the data recorded as per the prescribed formats to the Offsite Supervision and Enforcement Department (OSED) of the SBP on a monthly basis.

The data will be reported in soft copy in a Microsoft Excel file within 10 days from the close of every month through e-mails.