CENTRAL BANK: Fraud ‘tripled’ during the pandemic

NASSAU, BAHAMAS — Instances of fraud relative to cheques, debit, and credit cards ‘tripled’ during the pandemic, according to data released by the Central Bank which also noted that the volume of debit card transactions expanded by just over 41 percent last year.

The Central Bank released its findings in its 2021 Annual Report and Financial Statements.

The report read: “The reported frequency of such instances, which increased during the pandemic, tripled to 8,337 from 2,638, however the associated value contracted by 49.3 percent to $2.6 million. Disaggregated by type, the number of debit card fraud cases accounted for 87.4 percent of the total, and 41.1 percent of the corresponding value.

“Credit card fraud represented 12.1 percent of total cases, as against 32 percent of overall value. As the use of cheques continues to taper, reported cheque fraud was 0.5 percent of total cases, although 27 percent of the total amounts.”

The regulator noted that over the review period cheque usage remained subdued, with the exception of large-value transactions.

“More specifically, the number of processed cheques declined by 7.6 percent to 1.2 million, while the attendant value fell by 6.8 percent to $4.2 billion, year-on-year. The use of debit cards supported an additional reduction in demand for cash dispensing services and credit-financed payments. Cemented by changes in consumer behavior and commercial banks’ policies as a result of the pandemic, during 2021 the volume and value of debit card activities expanded by 41.5 percent to 17.6 million transactions and by 14.3 percent to $2 billion, respectively.”

According to the Central Bank, in 2021, the total number of users of online banking platforms, inclusive of the residential, business, public sector, and other users, reduced by 8.8 percent to 94,264.

The Central Bank also noted that at the end of 2021 it maintained custody of 38,504 dormant facilities, with balances totaling $83.69 million, denominated in six currencies.

“Balances in United States dollars and Bahamian dollars together accounted for 92.4 percent of the total, while amounts comprising the Canadian dollar, Swiss franc, Euro, and British pound accounted for the remaining 7.6 percent. In accordance with the Central Bank Act, 2020 as of 31st December 2021, an estimated $2.1 million in dormant funds is due for remittance to the Government against the applicable 10-year custodial period expiration.”