Digital fraud soars during Ramadan: urgent call for proactive measures 
Digital fraud is rampant in the Kingdom during Ramadan, particularly with the surge in electronic transactions, notably in online shopping and temporary domestic labor services.
Fraudsters extend their reach by targeting pilgrims and visitors to the Two Holy Mosques through fake websites offering hotel bookings, train reservations, transport and more. They even impersonate renowned stores.
Tactics include purchasing search engine results to ensure their sites appear near the top. Specialists warn that fraudsters leverage trusted platforms and legitimate advertising agencies to access personal data and credit card information, enabling them to siphon funds or perpetrate further fraud.
Commercial banks and telecommunications companies are exploited by digital fraud due to obvious loopholes. For instance, some banks lack the need for fingerprint authentication to electronically modify bank account information, as observed with the Absher platform and its services. Instead, they solely rely on a code sent to a mobile phone for verification, which ignores the possibility of stealing or cloning the mobile SIM card along with bank details.
Adding to the challenge is the ease with which a Saudi SIM card can be obtained online and from outside the Kingdom. Furthermore, fraudulent calls — especially those originating from a Saudi number — can appear very credible. Complicating matters, the interaction between police and banks remains rudimentary and paper based. When reporting fraud, individuals must submit a written request to the bank for account information, a process that can take up to 15 days to receive a response. The state should prioritize establishing electronic controls, focusing on securing and protecting the system before considering the introduction of new services.
Unfortunately, current practices in banks and telecommunication companies adopt a reactive rather than proactive approach to digital fraud. This is particularly alarming for vulnerable groups such as the elderly, who are often targeted with fictitious marriage offers, and women. According to the Saudi press, women lost approximately SR1 billion ($267 million) in 2022 alone due to digital fraud.
According to 2023 figures, financial fraud worldwide incurs losses of $21.9 billion per month, $931 million per week, $15.2 million per minute, and $255,000 per second. Moreover, the likelihood of a fraudster compromising someone’s data through hacking, phishing, or social engineering is 1 in 2,000. A social experiment conducted in 2022, involving Saudi banks and the cybersecurity federation, identified the top Saudi cities interacting with fake offers and mobile fraud messages as Jeddah, Riyadh, Dammam, Madinah, and Makkah, respectively.
In 2023, local statistics revealed that 54 percent of the Kingdom’s population fell victim to at least one online scam the previous year, with 13 percent experiencing multiple frauds. Additionally, a Wakefield Research study highlighted how consumer overconfidence in Saudi Arabia has increased susceptibility to online fraud. It found that 80 percent of citizens and residents who perceive themselves as immune to fraud are more likely to respond to fraudulent requests compared to those who don’t. This issue gains significance as 70 percent of transactions in the Kingdom are projected to be digital by 2030.
The financial fraud system implemented by the Saudi Central Bank in 2020, though commendable, falls short with penalties capped at five years in prison and SR5 million in fines. In contrast, the EU imposes fines of up to €20 million on companies that mishandle citizens’ information. Thus, there is a pressing need for a comprehensive national program to combat fraud, integrating all relevant government and private agencies.
Establishing an electronic link between police and banks for immediate response to inquiries is vital, alongside leveraging international best practices exemplified by Europe, America, and Australia’s successful handling of fraud through platforms like Genesis Market in 2023.
• Dr. Bader bin Saud is a columnist for Al-Riyadh newspaper, a media and knowledge management researcher, and the former deputy commander of the Special Forces for Hajj and Umrah in Saudi Arabia. X: @BaderbinSaud
