Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (254/2022)

To all payment service companies operating in Palestine
Date: Wednesday, October 12, 2022

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Subject: Fraudulent Modus Operandi

The Palestine Monetary Authority urges payment service companies to take necessary precautionary and cautionary measures to avoid a fraudulent modus operandi aimed at deceiving and defrauding citizens and stealing their funds. This modus operandi is summarized as follows:

1. Unknown individuals posing as companies or commercial establishments contact some citizens via communication and social media platforms, inviting them to purchase goods and services at low prices or through easy installment plans, for example: purchasing antiques, mobile phones, and electronic devices.

2. The fraudsters send an electronic payment request to the victim using the "Payment Request to Merchant" feature via the e-wallet application, followed by the victim receiving a verification code (OTP) to complete the electronic payment process. The fraudster exploits this by obtaining the code under the pretext that it is a special code to confirm the purchase request.

3. Once the fraudster enters the verification code, their e-wallet is credited with the value of the payment request sent to the victim. The funds are then exploited to pay for purchases, top up phone balances, withdraw cash through one of the agents, or transfer from the governorate to their bank account.

In its commitment to safeguarding citizens' funds and combating fraudulent methods, and to mitigate the risks of money laundering and terrorist financing, the Authority emphasizes the necessity of implementing the following measures:

1. Inform and warn customers and citizens about the fraudulent modus operandi used, and distribute relevant awareness bulletins at main and branch agents, as well as through the company's social media channels.

2. Provide customers with a free SMS notification when financial transactions are executed on their e-wallets.

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(Page 2)

3. Provide mechanisms and channels to receive customer reports when they fall victim to fraud.

4. Take the necessary legal action against fraudsters in accordance with the provisions of Decision-Law No. (39) of 2022, and direct victim customers to file a complaint with the Cybercrime Unit of the Public Prosecution.

5. Implement necessary measures and controls to cease dealings with fraudulent individuals, including freezing their e-wallet balances and blacklisting them on the company's internal watchlists.

6. Monitor transfers conducted between the e-wallets of customers in the West Bank and the Gaza Strip.

We emphasize the necessity of providing our Anti-Money Laundering and Combating the Financing of Terrorism Department with the measures taken to comply with the requirements of the aforementioned clauses within one week from the date hereof, including the dissemination of relevant awareness campaigns through the company's social media channels and at main and branch agents.

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Supervision Group
Palestine Monetary Authority

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Note:
Page 1 and Page 2 constitute a single document (Circular No. 254/2022) from the Palestine Monetary Authority.

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Contact Information:

Ramallah and Al-Bireh Governorate - Palestine P.O. Box 452
info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251
Gaza - Palestine P.O. Box 4026
Fax: +970 8 2844487 | Tel: +970 8 2825713 | Tel: +970 8 2825713

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