The Basel Committee has released a paper discussing digital fraud and banking, an issue that has grown with the advent of technological banking advancements and the Covid-19 pandemic.
Three main sets of questions are explored by the report. The first seeks to provide a definition of digital fraud, outlining defining features and questioning how policymakers should approach the issue and its implications on banks.
Second, the supervisory and financial stability implications of digital fraud are considered. The committee seeks to identify the empirical data available to assess the “magnitude and prevalence” of digital fraud, and looks at how the issue is relevant to it and its mandate.
Finally, the committee asks what is being done to mitigate digital fraud risks in the banking sector. This question interrogates initiatives both present and future on a domestic, regional and global scale.
The Basel Committee emphasises that the paper is intended to provide a high-level assessment of the situation, and does not serve as a “comprehensive and exhaustive analysis” of digital fraud.
Stakeholders are invited to provide comments and feedback on the paper until 16 February 2024.
