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ABK Sheds Light on Risks of Cryptocurrency Trading

10 May 2022

ABK Sheds Light on Risks of Cryptocurrency Trading

Al Ahli Bank of Kuwait (ABK) continues to strongly support the ‘Diraya’ ‘Let’s Be Aware’ banking awareness campaign from the Central Bank of Kuwait (CBK) and the Kuwait Banking Association (KBA). As such, ABK has been working to highlight the rights of customers and provide information about several topics with regards to banking and financial transactions through its various channels, including social media, events, and more.

The ‘Diraya’ campaign is now in its second year and sheds light on the following: the two types of banks and the role of banks in stimulating and developing the economy; services for people with special needs; clear and specific policies related to the borrowing process; types of bank cards and tips for using them; products and services related to investing and saving; the two types of personal finance, as well as security and cybersecurity tips. The campaign also facilitates consumer protection by clarifying the process for raising complaints about banking services.

In response to a substantial shift in public attitude towards digital currencies, customers should be very cautious when dealing with cryptocurrencies. The Central Bank of Kuwait warns customers that digital currencies are not real currencies and are highly risky as they are not regulated by any state or international regulatory agencies. Instead cryptocurrencies are run across neworks of computers anonymously and transactions can be conducted through illegal/fake wallets or organisations, giving criminals the freedom to engage in illegal activities such as money laundering and other unauthorised transactions leaving people unprotected and with no legal recourse. In addition, digital currency platforms are difficult to monitor and they are prone to cyber-attacks.

Mr. Ali Bu Hamad, Head of the Complaint and Customers Protection Unit at ABK said: “Financial institutions in our country are advised to raise awareness amongst consumers about the risks of trading with cryptocurrencies by the Central Bank of Kuwait. Moreover, banks are encouraged to report any suspicious transactions to the relevant state authorities. Recent reports have found that impersonation attacks related to cryptocurrency continue to grow exponentially. Attackers are broadening their range of cryptocurrency attacks - from extortion and ransomware to incorporating digital currencies into spear phishing, impersonation, and business email compromise (BEC) attacks. “

Ali Bu Hamad further noted, “At ABK, we are committed to providing consumers with the highest level of safety and aim to continuously contribute to their knowledge by raising awareness about their rights and duties using the Bank’s multiple channels. As an strong advocate for the ‘Let’s Be Aware’ Campaign, ABK aims to enhance Kuwait’s financial culture and urge consumers to refrain from involvement in suspicious activities related to crypto trading, as well as ignore and report suspicious activities.”

Through the ‘Let’s Be Aware’ Campaign, financial institutions and regulators raise awareness about banking products and services in addition to the basic principles and concepts in the financial and banking field.

For more information, please follow the campaign’s Instagram and Twitter accounts at @dirayakw or visit the campaign’s official website at www.dirayakw.com.