New phishing scams in Kuwait target money laundering victims

KUwait, November 27: In today’s era of technological advancement and widespread connectivity, the financial fraud landscape continues to evolve rapidly. Fraudsters are becoming more and more adept at adapting to new trends and exploiting security vulnerabilities, leaving users vulnerable to a variety of fraudulent tactics.

One of the newer forms of phishing in Kuwait involves fraudsters impersonating legitimate entities. Unlike traditional methods that involve extorting personal information or money, these programs are designed to trick individuals into unknowingly opening electronic bank accounts. These accounts are later used as conduits for laundering money obtained through fraudulent activities.

Target groups

Informed sources revealed that cross-border gangs targeting individuals in Kuwait have been identified in a central virtual room set up by Kuwaiti banks to deal with customer reports of financial fraud. Fraudsters convince victims to help open new electronic bank accounts through authentication processes. Students in particular were identified as the main target group due to their limited awareness of financial security.

The Department for Combating Financial Crimes has warned that these international gangs specialize in fraud and wire fraud. A number of complaints received through the virtual room and the prosecutor’s office indicate that these gangs take advantage of the convenience and speed of opening electronic accounts. They trick victims into creating accounts in their names and then linking unrelated phone numbers to them, further obfuscating the scam.

Using Authentication Services

According to sources, these hackers use authentication services to exploit victims’ data without their knowledge. Once an account is opened, it becomes a platform for the gang’s fraudulent activities. Victims are unknowingly involved in these crimes because their accounts are used to accumulate illicit funds.

The Anti-Money Crime Department noted that students are often targeted due to their lack of awareness about the risks associated with authentication processes. Victims unwittingly cease to be victims and become suspects because their accounts are linked to money laundering activities and their sources of funding are unknown.

Preventing exploitation

To combat these schemes, the Financial Crimes Department has recommended stricter authentication measures for opening electronic accounts. These improved procedures are intended to prevent gangs from using the service for fraudulent purposes.

The central virtual room continues to analyze fraud cases to identify target groups, channels used and patterns of fraud operations. Insights are shared with the public through awareness campaigns, videos and educational materials disseminated through social media platforms managed by the Central Bank of Kuwait, the Kuwait Banks Association and local banks. These efforts are further supported by the nationwide “Let’s Be Aware” awareness campaign.

WhatsApp scams

Another common form of financial fraud is hacking WhatsApp accounts. Fraudsters gain access to the victim’s contacts and send group invites to their friends. These invitations often encourage recipients to share their phone numbers and verification codes after clicking a link.

Once they have this information, fraudsters hack into recipients’ devices in search of sensitive images or files that can be used for extortion purposes. They may also send fake payment links to the victim’s contacts, hoping to exploit their trust.

Coordinated efforts to combat fraud

The Central Bank of Kuwait, in cooperation with the Kuwait Banking Association and local banks, has established a central virtual room where financial fraud complaints can be effectively dealt with. This initiative, launched in December last year, works around the clock to improve coordination between all relevant parties.

Key steps in fraud operations

1. Tricking victims into opening accounts using fraudulent methods.

2. Take advantage of the speed and convenience of creating an electronic account.

3. Linking unrelated phone numbers to the victim’s account.

4. Using victims’ data without their knowledge for illegal activities.

By raising awareness and implementing stricter security measures, authorities and banks are working to curb the growing threat of financial fraud in Kuwait.