Saudi Gazette report

RIYADH — The Saudi Central Bank (SAMA) has decided to ban the use of instant messaging applications such as WhatsApp by the local banks for their communications with customers. SAMA noted that these applications are unreliable channels, according to Asharq Al-Awsat newspaper.

SAMA's decision is based on the powers assigned to it and other related regulations, and out of its keenness to enhance the quality of practices and procedures followed by financial institutions subject to its supervision, in a way bringing the risks to the minimum.

It is learnt that the Central Bank has asked financial institutions to examine the availability of alternative and secure channels such as benefiting from activating instant messaging services such as Live Chat or ChatBot, within the application, or the financial institution's website, taking into account compliance with the requirements for protecting personal data.

The Central Bank has instructed the local banks to work on these procedures and educate workers in financial institutions about the contents of the instructions, while conducting the necessary assessments to verify compliance with them. This includes all branch, customer service and marketing employees.

The Media and Awareness Committee at Saudi Banks recently warned of fraud cases that occur by impersonating charitable institutions or the names of public or legal figures who claim to provide financial assistance through social media sites. These fraudsters exploit victims by deluding them into believing that they represent official bodies, by using fake documents and seals to convince them to pay fees to obtain assistance.

The committee confirmed that official bodies do not announce or search for beneficiaries for donations through social media sites or instant messaging programs.

The committee noted that fraudsters are looking for all ways to attract people, by deluding victims into believing that they deserve donations or support from these well-known charitable institutions that they claim to be responsible for, or by exploiting the names of legal entities that provide support and assistance, and that the person must pay some fees by transferring sums of money or paying fees through links in order to complete the rest of the procedures to obtain support and assistance.

Rima Al-Qahtani, head of the fraud control department at the Arab National Bank, said that there is no official body that requests fees or adding a beneficiary or an invoice or paying amounts in exchange for obtaining donations.

Secretary General of the Media and Awareness Committee at Saudi Banks Rabah Al-Shemaisi explained that the media committee stresses the need not to respond to any party that requires sums or fees to obtain a donation or a specific service. She drew attention to a spike in fraud cases in this way that the committee has noticed, and always advises against transferring any amounts to such parties.

Customers can benefit from the SADAD system available in all Saudi banks and banking applications to pay any bills or service fees officially. It is a secure system for all payments. In the event of any fraud incident, the bank must be notified immediately to take the necessary measures to recover the amounts. These warnings come within the efforts of Saudi banks to raise awareness against financial fraud through national awareness campaigns, and the need to take precautions against fraudsters exploiting charitable institutions and legal entities. These efforts are part of the campaigns implemented by Saudi banks to combat financial fraud and increase awareness among customers, by providing information and skills that contribute to raising awareness against fraudsters, in addition to ongoing efforts within the framework of their programs and initiatives to enhance awareness against financial fraud.