Rising Deportation of Expats in Kuwait Raise Banking and Telecom Security Concerns

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KUWAIT CITY, Oct 4:  Banks and telecommunications companies in Kuwait are becoming more sensitive to the risks posed by the increasing number of expatriates being deported from the country. Banks are concerned about the potential exploitation of bank accounts belonging to deported expatriates, as well as the possibility of fraudulent and financial fraud operations against citizens and residents. They are examining a procedural mechanism to identify the names of deported expatriate workers to secure their banking systems.

There are approximately 30,000 bank accounts, equivalent to the number of expatriates deported from Kuwait since the beginning of the year, which pose security risks to the financial system. Banks fear that these accounts will be exploited by financial fraud gangs that recruit more expatriate workers for fraudulent operations.

Telecommunications companies and banks are also concerned about the possibility of financial fraud gangs exploiting the phone lines of deported expatriates to communicate with citizens and residents for financial fraud, reports Al Rai. To protect bank accounts from hackers, consumers should use strong passwords and two-factor authentication, and ensure that they are on their bank or financial institution’s website or app when transacting business. Banks are obligated to alert regulators and law enforcement through a Suspicious Activity Report if there is irregular behavior that they cannot easily explain. The financial services marketplace continues to become more disaggregated, and consumers are bundling services and providers (bank and nonbank) in new and interesting ways.

This disaggregation may provide greater choices for consumers but also may make it more difficult for consumers to clearly distinguish differences between bank and nonbank products and to understand the protections available, such as deposit insurance. More consumers became banked and sustained their banking relationship through financial distress, and initiatives to bank consumers at opportune moments have existed for some time.

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