Safa’a Zaman, the President of the Information Security Association, has highlighted the impact of inadequate legislation and a lack of awareness on the increasing prevalence of fraud and electronic scams. Zaman emphasized that individuals’ susceptibility to exploitation by cyber criminals and fraudsters is heightened due to their unfamiliarity with modern hacking techniques and the absence of robust legal frameworks.
Zaman, in an interview with Al-Qabas daily, shed light on the various fraudulent methods employed by scammers. These include impersonating shipping and delivery companies’ accounts, deceptive practices related to fake investments and digital currency trading, and the impersonation of reputable investment firms to gain the trust of potential victims.
One of the prominent scam tactics Zaman elaborated on is the impersonation of bank employees. Scammers pressure victims to disclose sensitive information under the guise of updating data or ensuring account continuity. Zaman also warned about phishing attacks that lure individuals to input sensitive information on fake websites with enticing advertisements, only to reveal the site’s illegitimacy later. She emphasized the importance of caution to avoid falling victim to such scams in the future.
Authorities have expressed growing concerns about electronic fraud due to interactions with dubious messages or websites. Zaman stressed that hacking and electronic crimes pose significant obstacles to digital transformation. She highlighted the surge in innovative financial fraud methods, particularly in Kuwait, which has led to widespread dissatisfaction expressed across various social media platforms.
Several factors contribute to the rise in fraud, according to Zaman. Compromised privacy and easy access to data play a significant role. Zaman pointed out the absence of laws criminalizing entities that request citizens’ and residents’ data without providing legal protection against leaks. She also mentioned the impact of social networking applications and certain companies trading user data. Zaman cited instances of terminated licenses of insurance companies and employees clandestinely selling data for profit.
Weak legislation, numerous loopholes, and legislative gaps concerning modern technologies in financial transactions further contribute to the proliferation of financial fraud. The use of vulnerable technologies with security gaps makes it easier for criminals to acquire sensitive data. Zaman criticized the failure of some government agencies and the private sector to update security applications to address vulnerabilities. This lack of action contrasts with the advancement of hacking methods and the integration of artificial intelligence, which have made hacking more accessible and widespread.
Zaman emphasized that electronic fraud has become a pressing issue in Gulf countries, especially with the rapid development of technology. The constantly evolving nature of fraud makes it challenging to predict new methods, leading governments and international systems to be increasingly concerned. A study conducted by Naif Arab University for Security Sciences, in cooperation with Interpol, analyzed 503 fraudulent advertisements and found that the number of daily visits from potential victims of these fraudulent sites exceeds 137,000 from all Arab countries.
Furthermore, a recent research report by Juniper Research revealed that the total losses resulting from fraudulent operations through electronic payment worldwide are projected to exceed $343 billion over the next five years. These estimated losses are equivalent to more than 350% of Apple’s net income in 2021.
Zaman also highlighted the impact of the COVID-19 pandemic as a fertile environment for fraudsters, as reported by the Financial Times. The pandemic created new opportunities for scammers to exploit vulnerabilities and deceive unsuspecting individuals.
In conclusion, the rise in electronic fraud can be attributed to inadequate legislation, a lack of awareness, and the constant evolution of hacking techniques. It is crucial for governments, businesses, and individuals to prioritize cybersecurity measures, update security applications, and enhance public awareness to mitigate the risks associated with electronic fraud.
Source: TimesKuwait
