FRAUD in Jamaica’s banking system is becoming less frequent but more targeted and organised, with criminals pursuing bigger payouts even as reported cases and overall losses decline, according to the Bank of Jamaica (BOJ) and police investigators.

The central bank, in its 2025 Financial Stability Report published on March 31, said total fraud losses in the deposit-taking sector fell 18 per cent to $2.4 billion in 2025, down from roughly $2.9 billion a year earlier, while the number of reported incidents dropped 58.9 per cent to 44,316 — the first decline in aggregate fraud in more than four years.

“Whilst the volume of reports is contracting, financial losses are increasing with fewer attempts,” said Horace Forbes, head of the Jamaica Constabulary Force’s Fraud Squad and Financial Crimes Investigation Division, in response to questions from the Jamaica Observer.

But the composition of that fraud is changing. The central bank reported that credit card fraud rose 29.4 per cent and debit card fraud increased 16.8 per cent in 2025, driven in part by “card-not-present” transactions — payments made online, by phone or through apps where the physical card is not used — even as loan fraud fell 87 per cent, Internet banking fraud declined 78.4 per cent, and cheque fraud dropped 23.4 per cent.

Investigators are increasingly encountering syndicates in which individuals perform specialised roles — from breaching accounts and manipulating victims to moving funds and extracting cash — allowing fraud to be carried out more quickly and across multiple locations, Forbes indicated.

Many of these attacks are executed through digital channels. In some cases, email accounts linked to real estate transactions or payments to overseas suppliers are compromised, allowing fraudsters to intercept and redirect large transfers. In others, account information obtained in one location is used almost immediately elsewhere to initiate transactions.

Funds are now moved so quickly that recovery becomes far more difficult once transactions are completed, Forbes noted, particularly after money is withdrawn or converted.

Funds can be traced while they remain within the formal banking system, he explained, with financial institutions able to freeze accounts or investigators able to obtain court orders.

Once cash is extracted, or funds are layered through online trading platforms, e-commerce channels or cryptocurrencies, tracing becomes more complex and often requires international cooperation.

“For evidentiary purposes, this will require the use of mutual legal assistance, which takes some time,” Forbes told the Business Observer.

He also pointed to the structure of some operations, which mirror legitimate businesses, with victims passed between multiple individuals to maintain the appearance of a legitimate transaction.

The pattern is also altering how cases are handled, Forbes added, with investigators placing greater emphasis on asset tracing and seizure as funds move quickly across accounts and jurisdictions.

The Bank of Jamaica said these developments reflect heightened cybersecurity risks linked to the expansion of digital payments, particularly the growth in card-not-present transactions. While the payments system has continued to grow and operate efficiently, increased reliance on electronic channels raises exposure to operational and cyber risks.

This means that even as fraud cases decline, each incident carries higher financial risk, with faster execution making losses more difficult to recover and increasing pressure on banks to strengthen real-time monitoring and fraud prevention systems.

At the same time, the decline in traditional fraud categories suggests that stronger controls and monitoring across banks and payment platforms are having an effect. The central bank attributed the overall reduction in fraud to improvements in digital security infrastructure, enhanced transaction monitoring, and closer coordination across the financial system.

Despite these pressures, the Bank of Jamaica said the financial system remains resilient, supported by strong capital buffers, high liquidity levels, and ongoing regulatory upgrades, including measures aimed at strengthening cybersecurity and oversight.

The fall in reported cases does not mean fraud risks are easing, with investigators warning that fewer, more coordinated attacks are now yielding higher-value outcomes.

The shift reflects a broader evolution in how financial crime is developing, with fewer but more efficient attacks reshaping risk across the system.