The Central Bank of the UAE has instructed financial institutions across the country to strengthen fraud prevention systems and tighten customer authentication procedures as digital banking scams continue evolving globally.
The move comes as the UAE expands its efforts to protect consumers and strengthen confidence in the country’s financial system amid growing use of online banking and digital payment services.
According to the Central Bank, banks and financial institutions are now required to improve how they verify transactions and avoid depending on a single authentication method, such as SMS alerts or one-time passwords (OTPs), which fraudsters increasingly target through sophisticated cyber scams.
Real-time fraud monitoring
The regulator also confirmed it has started building a new Anti-Fraud Operations Centre known as CAFOC, which will act as a central platform for monitoring suspicious activity in real time and coordinating rapid responses across the banking sector.
The new centre is expected to combine advanced tracking systems, analytical tools and data-driven fraud detection capabilities designed to identify emerging threats faster and improve coordination between banks and government authorities.
The Central Bank added that the anti-fraud framework will also help collect and analyse fraud trends and behavioural patterns, allowing regulators to develop more targeted supervisory policies and interventions.
The latest measures arrive as financial fraud risks continue rising worldwide alongside rapid digital transformation and increased reliance on mobile banking, online transactions and electronic payment systems.
Authorities said ongoing engagement with banks and licensed financial institutions has helped strengthen implementation of the updated requirements and improve the sector’s readiness to deal with increasingly complex fraud threats.
Cybersecurity and financial fraud prevention have become major priorities for regulators globally, with many countries introducing stricter digital authentication standards as online scams become more advanced.