The Bank of Jamaica (BOJ) has issued a stark warning over the alarming rise in internet banking fraud, which has increased by an astounding 890 percent since 2020.
This surge in cybercrimes, as outlined in the BOJ’s latest financial stability report for 2024, has become one of the most significant emerging threats to the country’s banking sector.
The BOJ’s report, published on Monday, reveals that banking fraud is now a major concern, with internet banking fraud incidents rising sharply between 2019 and 2023, “approximately nine times the pre-pandemic rate.” The central bank attributed this rise to the rapid shift towards electronic banking methods following the COVID-19 pandemic. “Furthermore, since 2020, internet banking frauds have increased due to a shift towards electronic methods for transacting business following the advent of COVID-19,” the report explained.
Between 2020 and 2023, the country saw internet banking fraud increase by 890.6 percent, a jump of $330.6 million compared to 2019 and the years prior. The report stated, “Banking fraud stood out as an emerging risk in 2024,” highlighting the scale of this surge in digital fraud.
The report also outlined that credit and debit card fraud was the most prevalent type, accounting for “an annual average of just over 69 percent of the $800 million of total fraud amounts reported by financial institutions” by the end of 2023. These frauds were primarily concentrated in areas with higher digital traffic, such as Kingston, Portmore, and Spanish Town.
While fraud involving loans and internal bank processes remained less frequent and of lower value, card and internet banking frauds continue to be the most concerning. “Card and internet banking frauds were most prevalent in higher digital traffic areas in major towns and cities such as Kingston, Portmore, and Spanish Town,” the report noted.
Increase in ABM and CIT robberies
The BOJ also reported a rise in physical robberies targeting currency management services, including five attacks on cash-in-transit (CIT) service providers and 10 robbery attempts at automated banking machine (ABM) locations. These incidents resulted in the theft of approximately $145 million. However, these types of robberies represented a smaller portion of the monetary losses compared to online fraud.
In response to these increasing threats, the central bank indicated that commercial banks have introduced enhanced anti-fraud measures and have taken steps to recover losses. Additionally, the BOJ emphasized the importance of prosecution and enforcement efforts in tackling fraud.
As fraudsters continue to adapt their techniques, the Bank of Jamaica warned of a rise in social engineering tactics, which have proven to be increasingly effective in circumventing security measures. The BOJ stressed that both financial institutions and the public must remain vigilant and proactive in combating these evolving threats to Jamaica’s banking sector.
The central bank’s ongoing efforts will focus on strengthening the country’s financial security and ensuring that Jamaica’s banking system remains resilient in the face of emerging cybercrime risks.
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