ERBIL, Kurdistan Region - The Iraqi National Security Services (INSS) issued a warning on Saturday of a rise in digital financial fraud using fake accounts and impersonating financial companies utilizing deepfake technology, as the country makes the shift to digital banking.
“The agency has detected a rise in online financial fraud conducted through social media pages and websites impersonating local and foreign banks,” INSS spokesperson Arshad al-Hakim said in a statement.
The scammers offer loans or investment opportunities through fraudulent accounts or platforms that impersonate local or foreign banks and financial institutions to lure victims and steal their banking data and their money, he explained.
“The scammers use enticing advertisements promising easy loans, free grants, or the sale of US dollars at attractive rates. Victims are then directed to fake websites where they are asked to provide personal information or bank card details, leading to salary thefts or unauthorized money transfers,” Hakim said.
This rise in digital scamming comes as the government is moving towards digital banking and a cashless system. This summer, the government banned cash in all government institutions, requiring all payments to be made electronically.
Hakim urged Iraqis to verify the identity of any financial institution through official channels and contact the banks directly before sharing any personal data as banks never ask clients to share sensitive personal data online.
Although there is a growing interest in digital banking and the Central Bank has launched initiatives to support digital enrollment, progress remains slow due to the absence of essential regulatory frameworks.
The infrastructure for electronic payments is still underdeveloped and most Iraqis continue to convert their digitally paid salaries into physical cash - reinforcing the long-standing “cash-is-king” mindset that continues to stall the country’s financial modernization.
“The agency has detected a rise in online financial fraud conducted through social media pages and websites impersonating local and foreign banks,” INSS spokesperson Arshad al-Hakim said in a statement.
The scammers offer loans or investment opportunities through fraudulent accounts or platforms that impersonate local or foreign banks and financial institutions to lure victims and steal their banking data and their money, he explained.
“The scammers use enticing advertisements promising easy loans, free grants, or the sale of US dollars at attractive rates. Victims are then directed to fake websites where they are asked to provide personal information or bank card details, leading to salary thefts or unauthorized money transfers,” Hakim said.
This rise in digital scamming comes as the government is moving towards digital banking and a cashless system. This summer, the government banned cash in all government institutions, requiring all payments to be made electronically.
Hakim urged Iraqis to verify the identity of any financial institution through official channels and contact the banks directly before sharing any personal data as banks never ask clients to share sensitive personal data online.
Although there is a growing interest in digital banking and the Central Bank has launched initiatives to support digital enrollment, progress remains slow due to the absence of essential regulatory frameworks.
The infrastructure for electronic payments is still underdeveloped and most Iraqis continue to convert their digitally paid salaries into physical cash - reinforcing the long-standing “cash-is-king” mindset that continues to stall the country’s financial modernization.
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