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.
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.