In a significant move to counter online fraud, the Hungarian National Police (ORFK) and CIB Bank formalized a cooperation agreement on Wednesday in Budapest. The accord aims to enhance the fight against cybercrime, particularly financial scams targeting internet users.
The agreement was signed by Pál Simák, CEO of CIB Bank, and Sándor Töreki, Deputy National Police Chief for Criminal Affairs.
During the announcement, Pál Simák emphasized the importance of building trust and prioritizing the fight against fraud. He stated that combating online banking scams requires a dual approach: effective customer awareness campaigns and swift action to recover fraudulently obtained funds. The latter necessitates close collaboration with law enforcement agencies.
Under the agreement, designated CIB Bank employees will respond promptly to police notifications, working to prevent stolen funds from being transferred or withdrawn. Simák highlighted that recent measures implemented by the bank, including a filtering system, have already reduced the rate of successful fraud to below average levels compared to transaction volumes.
‘Designated CIB Bank employees will respond promptly to police notifications’
Deputy Police Chief Sándor Töreki underscored the agreement’s potential to enable swift action against cybercriminals and recover victims’ funds efficiently. He noted that reports of online fraud peaked during the summer of 2023, with 50-70 complaints filed daily. Thanks to improved coordination between banks and authorities, these numbers have since declined.
Despite this progress, the scale of the challenge remains daunting. Last year, authorities identified 200 fraudsters and dismantled several fraudulent ‘call centres,’ many in cooperation with Ukrainian authorities. These efforts have led to the recovery of over 700 million forints in the past 18 months.
Looking ahead, Töreki revealed that new legislation, set to take effect in 2025, will grant police greater powers to suspend suspicious hosting providers and automatically freeze funds transferred to accounts flagged for fraud.
He also disclosed that many fraud operations are organized from Ukraine. Beyond CIB Bank, the police have established similar agreements with OTP Bank and are planning partnerships with other financial institutions.
This agreement marks a crucial step in Hungary’s battle against cybercrime. By fostering close collaboration between financial institutions and law enforcement, the initiative aims to reduce the prevalence of online scams, protect customers, and enhance the resilience of the country’s digital financial ecosystem.
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