FINANCIAL FRAUD IN COMMERCIAL BANKS OF UKRAINE. WAYS OF CONTROL IN THE FIELD OF CASHLESS OPERATIONS

Abstract

The development of non-cash forms of payment, the introduction of bank cards, Internet resources in the field of payments, is a characteristic feature of everyday life. In 2020–2021, due to quarantine measures, Ukrainians increasingly began to choose non-cash payments, payments and online purchases. The active use of the latest information technologies has led to the growth of various manifestations of fraud in the field of public relations, ranging from financial and credit and ending with foreign economic activity and the Internet. Financial fraud, which is a system of relations in the field of money circulation and financial obligations, the purpose of which is to misappropriate the financial resources of banks and/or their customers by deceiving or abusing the trust or position of citizens/employees of banking institutions. The imperfect legal system contributes to the fact that the state continues to actively implement various fraudulent schemes. It has been established that the main type of fraud in the banking sector is payment card fraud. The most common types of fraudulent transactions with bank cards are considered. Based on the analysis of the consequences of cyber-fraud, which occur in the use of payment instruments by banks, it is determined that the most vulnerable place is the client himself, who under the influence of various methods of social engineering becomes the object of fraud. Based on statistical data, the dynamics of the number and structure of crimes related to financial fraud in Ukraine is analyzed and the high level of their latency is emphasized. Emphasis is placed on the important role of the state in overcoming this negative phenomenon. Ensuring the effective functioning of commercial banks, the proper level of their financial security is impossible without the formation and implementation of an effective system for detecting and preventing financial fraud in banking institutions. Analyzing the modern security system, simple rules for using software and electronic payment systems, which are used all over the world, have been introduced. There are also ways to combat financial fraud in general and bank card transactions in particular, which has a positive effect on improving the financial security of a commercial bank.