Reducing phone fraud demands a combination of cutting-edge technology, stronger laws, and concerted action from all stakeholders. This approach was outlined by Stanislav Kuznetsov, Deputy Chairman of the Board at Sberbank, during a panel on Fraud Prevention and Social Engineering at the Cybersecurity in Finance forum held in Yekaterinburg. (Bank press service)
As Kuznetsov noted, the financial sector, with Sberbank at the forefront, has made substantial progress in countering fraud in recent years. The most notable gains have come in the area of social engineering, where criminals exploit unsuspecting individuals to part with funds. (Bank press service)
Kuznetsov highlighted several concrete steps that have reduced the incidence of such scams against Sber customers. The shutdown of multiple fraudulent call centers in places of deprivation of liberty, the strengthening of anti-fraud measures by banks and mobile operators, and legislative revisions have contributed to this progress. These efforts have led to a substantial drop in phone scams targeting Sber clients, with decreases of roughly 15 to 20 percent observed. (Bank press service)
Nevertheless, the deputy chairman explained that the total volume of phone-based fraud rose by about 40 percent in 2022, a sign that fraudsters widened their reach beyond Sber customers to those of other financial institutions. This trend underscores the need for broader collaboration across the banking sector to curb fraud more effectively. (Bank press service)
For Sber customers, he stated, a fundamental shift in the fight against phone scams has already occurred. But achieving similar change nationwide will require joint efforts across the industry. He emphasized a willingness to allocate resources to develop a unified, automated system for phone fraud protection that could be offered free of charge to all banks, ensuring wider, faster protection. (Bank press service)
Beyond this, Kuznetsov mentioned that once amendments to the Federal Law On the National Payment System are enacted, banks would be obligated to pause transfers for two days when transferring funds from the Bank of Russia’s special base to the recipient details of suspected fraudsters. This safeguard is designed to curb rapid, untraceable transfers and buy time for verification. (Bank press service)
In addition, Sberbank announced the creation of a program to counter downfalls in the money chain, aiming to sever intermediaries who cash out and move funds stolen through phone schemes. The initiative represents a proactive step to disrupt the energy and pathways of fraud, reducing the ability of criminals to monetize stolen funds. (Bank press service)
Kuznetsov quantified the scale of the challenge, describing at least 580,000 active “drops” in Russia where illicit activity is either intentional or exploited by unknown actors. He asserted that effective suppression of these networks depends on strong, coordinated action across institutions and regulatory bodies. (Bank press service)
Ultimately, he argued, fighting phone-based fraud hinges on unified collaboration. The path to meaningful progress lies in shared resources, standardized automated protection, and persistent enforcement across all banks. (Bank press service)