Bank frauds come in many forms and can include a variety of financial crimes. It is critical to raise awareness about the various types of bank fraud and to put into practice the measures that can be taken to avoid becoming a victim of such criminal acts. In this article, we will also go over the steps that can be taken in order to file a complaint in such cases.
There are various types of bank frauds:
- Fraud with ATM: ATM machines are sometimes manipulated in a variety of ways by fraudsters. Included in this are a camera to record your pin details, a device attached to the card slot to record your card details, and a fake keypad. Once the data on the card’s magnetic strip and/or the user’s secure pin has been intercepted, the data is used to create fake cards from which funds are fraudulently withdrawn.
- Fake or phishing emails: It is a common tactic used by cybercriminals to send phishing emails purporting to be from a specific bank or the UAE central bank, enticing a victim to share personal information. Online information to gain the trust of unsuspecting victims, the emails are made to appear authentic by including logos and similar domains. Be especially wary of emails informing you that your ‘account has been frozen.’ In the past, this was a very common tactic used by fraudsters to put you in a panic and request sensitive data under the guise of unlocking or unfreezing your bank account. The UAE banks and the UAE Central Bank have repeatedly issued notices informing their clients that the banks would not require a verification process through such emails, and that your bank account would not be randomly frozen for no apparent reason. Such phishing emails frequently contain viruses or malware, external links that attempt to access and save your personal information.
- Scam calls: Similar to phishing emails, a fraudster attempts to obtain sensitive personal information such as a person’s date of birth, passwords, and card details by making convincing phone calls. Such calls are frequently made while posing as the bank’s technical team or the UAE police department in an attempt to obtain sensitive information by tricking or threatening the unaware victim.
Bank cheque fraud: The fraudsters provide one with a magical ink/pen for the purpose of writing the cheque. Using the same, the written cheque amount disappears after a few hours, giving the fraudster the perfect opportunity to refill the cheque value and then in cash the cheque for a higher value than the issuer intended.
How to File a Complaint in the Event of Bank Fraud:
- As a first step, file an official complaint with the bank. This will give you a record of the complaint and ensure proper procedures are followed until the matter is resolved. Use the formal steps of filing a complaint with the appropriate reference number and documentation. Furthermore, ensure that you are reaching the correct department within the bank; for example, corporate banking and personal banking have separate departments, and each bank has a legal department in addition to a dedicated customer care division. And also seek legal advice from banking lawyers.
- Submit a police report: As an immediate next step, file a police report to document your loss and the attempted hacking of your account. You may file a complaint with the cyber division, as in the case of online scams, depending on the nature of the financial crime.
- Report to the central bank: Once you have initiated your complaint with the bank and an investigation has begun, you may consider escalating the complaint to the UAE central bank. The Consumer Protection Department of the UAE Central Bank is in charge of resolving customer complaints against a particular financial institution. Of course, this step should be taken after attempting an initial internal resolution with the relevant financial institution. However, if the complaint is not resolved within thirty days or if you are dissatisfied with the resolution, consumers can file a complaint with the central bank.
Bank fraud is becoming more common around the world, including in the UAE. Recognizing the growing number of such scams, the UAE Central Bank, in collaboration with public authorities such as the Dubai and Abu Dhabi police, regularly conducts awareness campaigns to raise general public awareness. Prevention of such scams requires education.
