The Bank for International Settlements’ Basel Committee has published a discussion paper on digital fraud in the financial sector. Citing the increase in scale and scope of online fraud, the committee hopes to gather feedback from a range of interested stakeholders “to better understand the status of digital fraud as well as its mitigants”.

The paper describes the cybercriminal ecosystem as “increasingly industrialised”, with crime as a service allowing even criminals without technical expertise to get a piece of the pie. The situation has been exacerbated by Covid-19 – the pandemic accelerated the reliance on remote and online financial services, opening opportunities for cyber criminals.

The discussion in the paper is centred around three main areas: the defining features of digital fraud, the supervisory and financial stability implications of digital fraud, and the initiatives that are being pursued in the mitigation of digital fraud.

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Pointing out that digital fraud is cross-sectorial by nature, the Basel Committee is encouraging stakeholders from outside the banking industry – such as those in government agencies, non-profit organisations, and technology companies – to join in the conversation. The deadline for comments is 16 February 2024.