New phishing attacks in Kuwait target victims of money laundering operations

KUWAIT CITY, Nov 27: In today’s era of technological advancements and widespread connectivity, the financial fraud landscape continues to rapidly evolve. Fraudsters are becoming increasingly adept at adapting to new trends and exploiting vulnerabilities, leaving individuals susceptible to a variety of deceptive tactics.

One of the newer forms of phishing in Kuwait involves fraudsters posing as legitimate entities. Unlike traditional methods that seek personal information or money, these programs aim 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 the central virtual room set up by Kuwaiti banks to handle customer reports of financial fraud has identified cross-border gangs targeting individuals in Kuwait. These fraudsters convince victims to help open new electronic bank accounts through authentication processes. Students in particular are identified as the primary target group due to their limited awareness of financial security.

The Department of Combating Financial Crimes has warned that these international gangs specialize in electronic fraud and scams. Multiple complaints received through the virtual chamber and the Public Prosecution Service show that these gangs abuse the ease and speed of opening electronic accounts. They trick victims into creating accounts in their names and then link unrelated phone numbers to these accounts, further obfuscating the fraud.

Abusing authentication services

According to the sources, these hackers use authentication services to misuse victims’ data without their knowledge. Once the accounts are opened, they become platforms for the gang’s fraudulent activities. Victims are unknowingly involved in these crimes because their accounts are used to collect illegal money.

The Anti-Money Crimes Unit noted that students are often targeted due to their lack of awareness of the risks associated with authentication processes. The victims unknowingly turn from victim to suspect, because their accounts are linked to money laundering activities without them having insight into the sources of the money.

Preventing exploitation

To combat these practices, the Anti-Money Crimes Division has recommended stricter authentication measures for opening electronic accounts. These improved procedures are intended to prevent gangs from abusing this service for fraudulent purposes.

The central virtual chamber continues to analyze fraud cases to identify target groups, the channels used and the patterns of these operations. Insights are shared with the public through awareness campaigns, videos and educational materials distributed through social media platforms operated by the Central Bank of Kuwait, the Kuwait Banking Association and local banks. These efforts are further supported by the Let’s Be Aware national awareness campaign.

WhatsApp scam

Another common form of financial fraud is hacking WhatsApp accounts. Fraudsters gain access to a 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 provided link.

Once fraudsters obtain this information, they hack into recipients’ devices, looking for sensitive images or files that can be used for extortion. They can also send fraudulent payment links to the victim’s contacts, hoping to abuse their trust.

Coordinated efforts to combat fraud

The Central Bank of Kuwait, in collaboration with the Kuwait Banking Association and local banks, has set up a central virtual space to efficiently address financial fraud complaints. Launched last December, this initiative operates 24 hours a day to improve coordination between all relevant parties.

Key steps in fraud operations

1. Trick victims into opening accounts using fraudulent methods.

2. Take advantage of the speed and convenience of electronic account creation.

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

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

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