Basel Committee publishes discussion paper on digital fraud
- Basel Committee issues discussion paper on digital fraud and banking.
- The paper explores the supervisory and financial stability implications of digital fraud in banking, including existing data availability and measures to mitigate such risks.
- The Committee invites comments on the paper by 16 February 2024.
The Basel Committee on Banking Supervision is today publishing a discussion paper on digital fraud and banking.
Technological banking advancements can both provide benefits and present risks to bank soundness and financial stability. One such example is digital fraud: criminals are exploiting digitalisation to commit online fraud on a greater scale and scope than previously. Fraud risks have also evolved in response to the Covid-19 pandemic.
This discussion paper provides a high-level assessment of the supervisory and financial stability implications of digital fraud for the global banking system. Its purpose is to elicit comments and feedback from a broad range of interested stakeholders. It is structured around three broad sets of questions:
- What is digital fraud? What are its main defining features? How does digital fraud affect banks and how should policymakers think about it?
- What are the supervisory and financial stability implications? How are supervision and financial stability affected by digital fraud? Why is digital fraud of relevance to the Committee and its mandate? What empirical data are available to assess its magnitude and prevalence?
- What is being done to mitigate digital fraud risks within the banking sector? What initiatives have been pursued, or are planned, at the domestic, regional and global level?
This discussion paper is intended to provide a high-level assessment of these questions. It is not a comprehensive and exhaustive analysis of digital fraud. The empirical analysis included in this discussion paper is based on readily available data.
The Committee welcomes comments from a broad range of interested stakeholders on the discussion paper, including the specific questions posed, which should be submitted here by 16 February 2024. All submissions will be published on the BIS website unless a respondent specifically requests confidential treatment.
Note to editors:
The Basel Committee is the primary global standard setter for the prudential regulation of banks and provides a forum for cooperation on banking supervisory matters. Its mandate is to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability. The Committee reports to the Group of Central Bank Governors and Heads of Supervision and seeks its endorsement for major decisions. The Committee has no formal supranational authority, and its decisions have no legal force. Rather, the Committee relies on its members' commitments to achieve its mandate. The Group of Central Bank Governors and Heads of Supervision is chaired by Tiff Macklem, Governor of the Bank of Canada. The Basel Committee is chaired by Pablo Hernández de Cos, Governor of the Bank of Spain.
More information about the Basel Committee is available here.