Scotiabank has stepped up its anti-fraud detection activities amid the growing incidence of scamming and fraud in the local banking system.

Scotiabank reported in its just-completed annual report for 2019 that operating expenses were higher in 2019 than the prior year partially due to increased fraud- related expenses, including investments in technology such as ATM software, online banking enhancements, security chips for credit cards, network upgrade to support Scotia’s digital strategy as well as business optimisation.

Operating expenses amounted to $24.10 billion for the period, an increase of $2.10 billion or 9.54 per cent compared to the prior year. These investments, Scotia Group contends are necessary investments for the future as the financial group continues to focus on improving customer satisfaction.

Speaking with the Jamaica Observer at a recent press conference, Scotiabank President David Noel admitted that fraud-related expenses have increased in some areas, highlighting the fact that credit card fraud has been an area of concern. He pointed out that Scotiabank has invested a lot in nullifying the incidence of credit card fraud, such as addressing some areas of the distribution process.

CREDIT CARD FRAUD DECLINES WHILE CHEQUE FRAUD ON THE RISE

This, he emphasised has resulted in the incidence of credit card fraud at Scotiabank coming down considerably. Admitting that fraud is a constant feature of the business of banking Noel told Sunday Finance that cheque fraud is on the increase.

“Unfortunately things like cheque fraud have started to increase and so we are seriously working on things which can reduce cheque fraud as well, and one of the things we are doing is working with our customers to help them to find safer, easier and cheaper ways to do their banking”, Noel said.

He mentioned that Scotiabank is encouraging customers that use cheques to migrate to the use of direct transfers, which is quicker, smoother and safer, thus reducing the possibility of cheque fraud.

In addition to these benefits, Noel declared that sometimes this process is free noting, “this is the way Jamaica is moving so we are constantly looking at ways to reduce fraud by not only increasing security around cheques but providing cheaper and more secure alternatives for customers of reducing fraud.”

This he argued is the power of digital, whereby most transactions are taking place on the digital platform via computers and smart phones, which is not only cheaper but also more secure than traditional methods of banking.

The Scotiabank boss was quick to point out that customers have been shifting to the digital platform with branch transaction accounting for a mere 12 per cent compared with online and mobile transactions growing leaps and bounds.

Noel concluded that Jamaicans are adopting to the digital platform of banking.