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2022-01-01

Circular No. 253: Fraudulent Technique

The Palestine Monetary Authority issued Circular No. 253/2022 to alert banks to a fraudulent technique where scammers impersonate merchants on social media and exploit e-wallet OTP verification codes to steal customer funds. The circular mandates that banks implement customer awareness campaigns, send free SMS notifications for e-wallet transactions, establish fraud reporting channels, and take legal action against perpetrators under Decision-Law No. 39 of 2022. Additionally, banks must freeze fraudulent accounts, monitor cross-regional e-wallet transfers, and report compliance measures to the AML/CFT department within one week.

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Palestine Monetary Authority

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Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (253/2022) To all banks operating in Palestine Date: Wednesday, October 12, 2022

Subject: Fraudulent Technique

The Palestine Monetary Authority urges banks to take protective and precautionary measures to avoid a fraudulent technique aimed at deceiving citizens and stealing their funds, which is summarized as follows:

  1. Unidentified individuals impersonating companies or commercial stores 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 furniture or mobile and electronic devices.

  2. The fraudsters send an electronic payment request to the victim using a "payment request for rent" via the e-wallet application, followed by the victim receiving a verification code (OTP) to complete the electronic payment process, which the fraudster exploits to obtain it under the pretext that it is a code specifically for confirming 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, and the funds are then exploited to pay for purchases, recharge phone balances, withdraw cash through one of the agents, or transfer from the wallet to their bank account.

In line with the Palestine Monetary Authority's commitment to safeguarding citizens' funds and combating fraudulent methods, and to mitigate the risks of money laundering and terrorist financing, we emphasize the necessity of taking the following measures:

  1. Raising awareness and warning customers and citizens about the fraudulent method used, and distributing relevant awareness brochures at main and branch agents, as well as through the bank's social media channels.

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

  3. Establishing mechanisms and channels to receive customer reports in case of fraud.

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

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

  2. Monitoring transfers conducted between e-wallets of West Bank and Gaza Strip customers.

We emphasize the necessity of providing our Anti-Money Laundering and Counter-Terrorist Financing Department with the measures taken to comply with the requirements of the above clauses within one week of this circular's date, including raising awareness through the bank's social media channels and at main and branch agents.

Supervision Group Palestine Monetary Authority

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

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