KUWAIT CITY, Nov 27: In today’s age of technological advancement and widespread connectivity, the landscape of financial fraud continues to evolve rapidly. Fraudsters are increasingly adept at adapting to new trends and exploiting vulnerabilities, leaving individuals susceptible to a variety of deceptive tactics.

One of the newer forms of phishing in Kuwait involves fraudsters impersonating legitimate entities. Unlike traditional methods that seek personal information or money, these schemes aim to deceive individuals into unknowingly opening electronic bank accounts. These accounts are later used as conduits for laundering money obtained through fraudulent activities.

Target Groups

Informed sources revealed that the central virtual room established by Kuwaiti banks to handle customer reports on financial fraud has identified cross-border gangs targeting individuals in Kuwait. These fraudsters convince victims to assist in opening new electronic bank accounts through authentication processes. Students, in particular, have been identified as a primary target group due to their limited awareness of financial security.

The Department of Combating Financial Crimes has warned that these international gangs specialize in electronic fraud and scams. Several complaints received through the virtual room and the Public Prosecution indicate that these gangs exploit the convenience and speed of opening electronic accounts. They deceive victims into creating accounts in their names and then associate unrelated phone numbers with these accounts, further obscuring the fraud.

Exploiting Authentication Services

According to the sources, these hackers leverage authentication services to exploit victims’ data without their knowledge. Once the accounts are opened, they become platforms for the gang’s fraudulent activities. Victims are unwittingly implicated in these crimes, as their accounts are used to collect illicit funds.

The Anti-Money Crimes Department noted that students are often targeted due to their lack of awareness about the risks associated with authentication processes. The victims, unknowingly, transition from being victims to suspects, as their accounts are linked to money laundering activities without their understanding of the funds’ sources.

Preventing Exploitation

To combat these schemes, the Anti-Money Crimes Department has recommended stricter authentication measures for opening electronic accounts. These enhanced procedures aim to prevent gangs from exploiting this service for fraudulent purposes.

The central virtual room continues to analyze fraud cases to identify targeted groups, the channels used, and the patterns of these operations. Insights are shared with the public through awareness campaigns, videos, and educational materials disseminated via social media platforms managed by the Central Bank of Kuwait, the Kuwait Banking Association, and local banks. These efforts are further supported by the national awareness campaign, Let’s Be Aware.

WhatsApp Scams

Another prevalent form of financial fraud involves hacking WhatsApp accounts. Fraudsters gain access to a victim’s contacts and send group invitations to their friends. These invitations often encourage recipients to share their phone numbers and verification codes after clicking on a provided link.

Once fraudsters obtain this information, they hack the recipients’ devices, searching for sensitive images or files that can be used for extortion. They may also send fraudulent payment links to the victim’s contacts, hoping to exploit their trust.

Coordinated Efforts to Combat Fraud

The Central Bank of Kuwait, in collaboration with the Kuwait Banking Association and local banks, has established a central virtual room to address financial fraud complaints efficiently. This initiative, launched last December, operates around the clock to enhance coordination among all relevant parties.

Key Steps in Fraud Operations

1.       Deceiving victims into opening accounts through fraudulent methods.

2.       Exploiting the speed and convenience of electronic account creation.

3.       Associating unrelated phone numbers with the victim’s account.

4.       Using victims’ data without their knowledge for illicit activities.

By raising awareness and implementing stricter security measures, authorities and banks aim to curb the rising threat of financial fraud in Kuwait.