Cybercrime Southeast Europe Newsletter No. 59

Why Are Banks Silent? How Financial Institutions Are (Not) Protecting Clients from Cyber Fraud

One of the frequently asked questions is the role of banks in preventing online fraud. Many clients rightly ask: how is it possible that money is transferred from citizens’ accounts to suspicious foreign platforms without any verification, and that banks do not respond?

Although banks are not formally responsible for the content of internet platforms to which clients voluntarily send funds, the question remains: are they truly doing enough to protect their clients?

When Should Banks Intervene?

There are clear behavioral patterns in financial fraud:
• large payments to non-resident companies,
• payments following contact via social networks,
• frequent transactions of identical amounts,
• first-time users of trading or crypto applications.

Banks have access to all this data. In many Western countries, financial institutions are obliged to warn clients in case of unusual behavior. In the Balkans – this rarely happens.

Regulatory Gaps or Passive Approach?

In the Balkans, most banks claim that the client independently decided to invest and that they are not obligated to verify where the money is being sent, even when it’s clearly a high-risk platform. However, an increasing number of legal initiatives are attempting to prove that a bank has a duty to detect fraud – if it holds information that any average expert would recognize as suspicious.

Our Commentary

We believe that changes in banks’ approach will gradually follow, especially under public pressure and international standards. In the meantime, clients must be extra cautious. Unfortunately, experience shows that fraud is usually noticed after the money is already gone.

Kind Regards,

Your DefendMe Team