In Ukraine, the number of fraud cases in the banking system has increased by a quarter

The National Bank of Ukraine has reported an increase in card fraud in the banking system. In 2023, the number of illegal card transactions increased by 25%, and the amount of losses from fraud compared to 2022 jumped by 73% – to 883 million hryvnias (approximately 20 million 954 thousand 758 euros).

This information is reported on the website of the National Bank of Ukraine.

According to the regulator, the average amount of one illegal transaction last year was 3065 hryvnias (almost 73 euros), which is 39% more than in 2022 (in 2022 – 2200 hryvnias – about 52 euros).

Starting in 2023, data on losses are provided not only by banks but also by postal operators and non-bank financial institutions. The share of losses from such institutions in the total amount of damage from illegal actions for 2023 was 0.4%, in terms of the number of cases – 0.2%.

Fraud with payment cards last year most often occurred online – 83% of the total number of cases. At the same time, only 17% of cases occurred through physical devices (retail networks, ATMs, self-service devices). The average amount of one illegal online transaction in 2023 increased by 31% and amounted to 3150 hryvnias (in 2022 – 2408 hryvnias).

Most fraudulent cases are caused by the disclosure of personal data by clients.

According to information provided by participants in the payment market, the most common scam scenarios in 2023 were as follows:

• Sending fake messages by scammers about the possibility of receiving assistance from the government or social funds. Clients click on the link provided and disclose vulnerable information, allowing the scammers to misappropriate their funds.
• Manufacturing a duplicate SIM card, particularly an electronic SIM card, and obtaining the client’s financial phone number by tricking them into revealing access codes to mobile operator applications. Subsequently, the fraudsters use the financial phone number to commit fraudulent actions, such as gaining access to mobile banking to steal money from accounts, purchase goods, or attempt to take out online loans.
• Phone calls from individuals pretending to be bank security personnel, the National Bank of Ukraine, or other institutions, in order to obtain payment card details, urge clients to carry out transactions (e.g., to allegedly avoid account blocking), and obtain one-time passwords from SMS messages, etc. Such disclosure of client data leads to financial losses.
• Spreading messages on messengers and social networks about the possibility of earning additional income by completing certain tasks on social networks or online, with the aim of encouraging clients to make specific purchases or transfer funds to the scammers.