IT is reassuring that the Ministry of Interior has issued a warning about suspicious websites, links, and deceptive communications that are designed to steal people’s money. In doing so, the ministry is fulfilling its duty.
However, there is a need for more efforts to deal with technological vulnerabilities related to the bank accounts of individuals, institutions, and companies. This responsibility primarily falls on the Central Bank of Kuwait, and secondly on commercial banks.
Today, technology has grown into a vast and expansive realm with both several pros and cons. Therefore, protection against hackers has become a critical defense against “hacker gangs” that steal people’s money. Recently, gangs have been hacking government websites or creating counterfeit versions that closely resemble the original ones.
These gangs have stolen money from many people who trusted these fake sites, as they appeared identical to the legitimate ones. Not everyone is equipped to recognize the signs of a fraudulent website. As a result, theft from bank customers’ accounts has become more widespread lately, and yet a solution to the issue remains elusive.
Many citizens continue to be shocked when they discover that money has been stolen from their accounts. It is important to note that this type of theft is classified as aggravated theft and is punishable by law, both in Kuwait and internationally. Transferring funds to domestic or foreign accounts without a legal basis is considered money laundering, as it involves the movement of illicit funds.
Concealing the source of such funds through transfers or transmissions also raises red flags, as the money is often obtained through electronic fraud. Preventing these unauthorized transfers is the responsibility of the central authority overseeing funds movements both inside and outside the country. When victims visit their bank, they are often told that the bank cannot assist them. The bank claims that since the victim did not inform them of the non-transfer of funds, the transfer was processed as usual.
The bank advises the victim to report the issue to the police and file a case with the Public Prosecution Office. In the meantime, the bank may temporarily suspend the victim’s card until the case is resolved. Unfortunately, this often results in the victim losing their money and being unable to access their bank account.
It is well known that the primary responsibility for financial security lies with the Central Bank of Kuwait, as is the case in neighboring countries and globally. The Central Bank operates a “Customer Identification and Monitoring Room,” which is authorized to delay any fund transfer between customers for a set period of time. This delay allows for verification of the transaction’s legitimacy and ensures that no fraudulent activity is involved
In some Gulf countries and around the world, effective solutions to this issue are already in place. The Operations and Activities Monitoring Room, which tracks transactions in real time, delays fund transfers for a short period to allow its staff to contact the issuing bank. The bank, in turn, reaches out to the customer to confirm their approval of the transaction, regardless of the amount.
It is unacceptable to treat this matter lightly, as it directly impacts financial and economic security and undermines citizens’ trust in the safety of fund transfers. Moreover, such incidents can lead to customers being falsely implicated in money laundering cases, which may result in serious consequences until their innocence is proven. By then, not only might the customer have lost their money, but also their reputation. Therefore, the Central Bank of Kuwait must take stronger measures to protect customers’ funds from hackers and fraudulent activities.
