Dutch banks suffered almost 36 million euros in damage due to cyber fraud last year. Bank helpdesk fraud in particular was a major cost item at more than 28 million euros, according to new figures from the Dutch Banking Association (NVB).
Ten thousand people fell victim to it in 2023. Banks and the cyber police warn of new, sophisticated forms of cyber fraud. According to the police, criminals are using artificial intelligence on an increasingly large scale to defraud people.
Solid detective work
Bank helpdesk fraud, where criminals pretend to be bank employees, has skyrocketed since 2020. Peak year was 2022, when cyber criminals managed to steal no less than 51 million euros. Banks and the police are satisfied with the decline of 45 percent last year, which was partly caused by heavy detective work by the cyber police, during which various gangs were rounded up and heavy prison sentences were handed out. Lower daily limits at banks and information also contributed to the decline.
But there is absolutely no reason to sit back, emphasize both the police and the banks. Much of the money that criminals steal through digital scams is used to finance other criminal activities, says Theo van der Plas, national program director for Digitalization & Cybercrime at the National Police. “We see that money captured through these forms of fraud is then used for drug trafficking, for example, which in turn sets in motion a spiral of violence. This results in a very toxic cocktail of digital and other forms of crime. That is also why we take it very seriously.”
No flag out
The flag is certainly not raised by the police and the NVB, now that the fraud figures for 2023 are known. Yes, of course they are happy that less bank help desk fraud was detected last year. “But 36 million is still a huge amount,” says Marco Doeland, head of Security Affairs at the NVB.
“One swallow does not make a summer,” sighs Theo van der Plas, national program director for Digitalization & Cybercrime at the National Police. “We are quicker on the ball, and we have recently been able to round up several gangs. Fortunately, judges also understand the impact of this form of crime, and stiff sentences of four or five years have been handed down. But we must remain alert to new developments, because cybercriminals are becoming increasingly shrewd.”
People with call center experience
The time when cybercriminals begged in grubby English from vague email addresses to click on a dubious link is long gone, emphasizes the cybercop . “What we see is that scammers, for example, recruit and use people with extensive call center experience to appear convincing. They speak neat Dutch and take the time to convince you. And before they call you, those scammers have often already done some real detective work: they know everything about you that is publicly available.”
The rise of artificial intelligence is a major concern for the police. “For example, criminals clone voices, making it appear that someone you know is calling. There are even examples of this deep fake videoconferencing, which, for example, affected a financial institution in Hong Kong. In that fake meeting, the CEO, surrounded by artificially created people who all actually worked in that company, requested a huge amount of money be transferred. It all seemed very reliable, but it was fake. You don’t have to be a loser to fall victim to cyber scams in 2024.”
‘Scammers are full-fledged psychologists’
Banks are also concerned, although as far as we know, artificial intelligence has not yet been used in bank helpdesk fraud. Ten thousand people fell victim to this form of cybercrime last year, in which scammers pretend to be bank employees, according to figures from the NVB. Victims are not always elderly, Marco Doeland emphasizes. “That image is outdated. Scammers are now full-fledged psychologists. They patiently follow a script of orientation, preparation, approach and persuasion, with the aim of robbing you of your piggy bank. Look, if you make a deal on Marktplaats that seems too good to be true, then it is probably too good to be true. That makes you sleep poorly for a few nights, but then your life goes on. This is different with digital fraud. It eats away at you.”
Punished twice
Victims are often punished twice, as the police also know. “First of all, there is of course the financial damage. That is very annoying, but it becomes even more annoying if those around you then start making accusations. “How could you be so stupid, Dad?” But you’re certainly not a loser if you fall victim to these clever scams. Precisely because of the enormous impact and the aftermath with feelings of shame associated with fraud, we now treat cybercrime with the same priority as a home burglary.”
The damage caused by fraud is a major cost item for banks. Since 2020, victims of bank helpdesk fraud have been compensated out of leniency, but under strict conditions. Last year, 69 percent of those affected received compensation. This is only the case if criminals have pretended to be bank employees. “But victims who have been defrauded before will not be eligible for compensation a second time,” warns the head of Security Affairs of the Dutch Banking Association.
Easier data sharing
To further reduce cyber fraud in the future, the police and banks are strongly calling on other parties. “Criminals can still operate anonymously online far too easily or pretend to be someone else. It would therefore be good if providers of online services and, for example, prepaid SIM cards were obliged to check the identity of their customers. Furthermore, social media companies and search engines could invest in detecting and removing fraudulent advertisements. To better detect and prevent cyber fraud, the government should also make it easier to share data between banks and with the police. In the meantime, bank customers would do well to recognize red flags and be careful about what they share on social media. Because too much candor online can cost you dearly.”