Payments-2022- Circular No. 259 Criminal Modus Operandi

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Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY

Circular No. (259 / 2022)
To all payment service companies operating in Palestine Date: Wednesday, October 12, 2022

Subject: Criminal Modus Operandi

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

1. Unidentified individuals contact some citizens via communication and social media platforms, impersonating companies or commercial establishments, and invite them to purchase goods and services at low prices or through easy installments, for example: purchasing furniture, mobile phones, or 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 provide to the fraudster to complete the electronic payment process. The fraudster deceives the victim into providing it 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 settle purchases, recharge phone balances, withdraw cash through an agent, or transfer from the wallet to their bank account.

In order to safeguard citizens' funds and combat 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 criminal modus operandi used, and distributing awareness leaflets specifically among primary and secondary agents and via the company's social media channels.
2. Providing customers with a free SMS notification when financial transactions are executed on their e-wallets.

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

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[Palestine Monetary Authority Logo]

Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY

3. Providing mechanisms and channels to receive customer reports in case they fall victim to fraud.
4. Taking necessary legal action against fraudsters in accordance with the provisions of Decision-Law No. (39) of 2022, and directing victim customers to file a complaint with the Cyber Crime Unit of the Public Prosecution.
5. Implementing necessary measures and controls to cease dealing with fraudulent individuals, including freezing their e-wallet balances and blacklisting them on the company's internal watchlists.
6. Monitoring transfers conducted between the e-wallets of West Bank and Gaza Strip customers.

We emphasize the necessity of providing our Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Department with the measures taken to comply with the requirements of the aforementioned items within one week of this circular's date, including disseminating awareness specifically via the company's social media channels and among primary and secondary agents.

Supervision Group
Palestine Monetary Authority

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