OREANDA-NEWS. March 11, 2009. In the circumstances of global financial crisis, the number of fraudulent schemes with regards to cashing of financial assets increases. Recently, there was the information in the Russian mass media that the major Russian banks faced the cases of fraud involving the inhabitants of Africa and the South America, reported the press-centre of IBA.

It came to the point, when the Association of Russian Banks (ARB) sent round the warning to credit organizations that the cases of fraud involving the citizens of Gyana, Nigeria, Ghana, Angola, Congo, South Africa, Kenya, Guinea-Bissau, and Benin became more frequent in Russia. When translating into Russian or upon transposition of words, their names coincide with the English names of major corporate clients.

The essence of scheme is the following: through the Internet, the swindlers in Nigeria dug up the information about the Russian companies, which had the counterparts in these countries, as well as the banks, in which they held their bank accounts. Then, the swindlers obtained the passports in the names coinciding with the names of Russian companies. As an example, ARB gives a coincidence in the name of Russian Open Society "United Power Systems" and the citizen of Nigeria with the passport in the name of EESRUS and surname of OAORAO.

Then the deliberate criminals opened the bank accounts with the Russian banks by showing the passports, the identification of which confirmed their authenticity. The crucial stage of fraud was the substitution of personal accounts' numbers or in the invoice sent by the supplier to the paying company for payment, or in the payment order itself.

As a result, the currency payment was remitted not to the supplying company but the individual person under the counterfeit contract. The first such case was detected in October, in November such scheme was repeated in another bank, and in January several major credit organizations encountered it, points out ARB. In order not to arouse suspicion, the amounts of payments were small - 50-100 thousand dollars, but it was on repeated occasions (NEWSru.com).

In his exclusive interview to "Zerkalo" newspaper, Gubad Guseynov, the director of banking security department, the board member of the International Bank of Azerbaijan (IBA), told about the successful struggle against swindlers and security system of IBA, the absolute leader in the banking sector of Azerbaijan.

- First of all, I would like to note that the kind of fraud that occurred in Russia has not been detected in our bank. There is no doubt that with the advance of information and communication systems and strengthening of interpenetration of global financial markets the issues of information systems' security become increasingly urgent.

Nowadays, the casual attitude to the matters of financial security is already inadmissible because, within a short period of time, the information and electronic communications systems have begun to play an important role not only in the day-to-day life, but in the bank's activity as well.

For instance, over the period from 2005 to 2008 alone, the volume of transactions in database increased by 2-3 times. Therefore, since the beginning of this year we have switched from "MIDAS" system over to the new system of "FlexCube", the capabilities of which enable to enhance the security of confidential information.

Of course, there are no absolutely reliable information systems and it is impossible to develop them, so the objective of security services is to complicate as much as possible the penetration into banking system and to minimize the risks of possible disturbance of its operation. So, the efficiency of services depends both on creation of obstacles to penetration into the system and implementation of precautionary measures. The infringement of banking information security means the attempts of unauthorized access to the information and all that it implies, from the virtual hooliganism to the financial frauds. However, with the competent security system, the overwhelming majority of hackers simply do not have any chance of penetrating into the information infrastructure.

I would like to point out that the high appraisal received by the International Bank of Azerbaijan from Citigroup Global Transactions Services, which awarded IBA the "Prize for the High Quality of Cash Transfer Services" twice, can serve as the appreciation of bank's achievements in its performance.

IBA keeps track of suspicious transactions with a view to fight against money laundering and financing of terrorism.

- Has IBA's banking security department ever encountered transnational swindlers?
- The fraud is connected with the plastic cards' transactions. The number of their holders has sharply grown recently, and accordingly, the technical infrastructure for servicing the cards has expanded. With all its advantages, the electronic business for security system has the drawback that the fraud in it has the international character and the infringer can be at any spot of the globe. And the more wider the service network, the more easier becomes the access to it. Basically, the plastic "purses" fraud is connected with the cards' counterfeiting attempts. And the first IBA's encounter with transnational swindlers dates back to December, 2002. During the period from December until March 2003, we revealed suspicious purchase and sale transactions conducted by means of bank plastic cards.

With the efforts of employees of IBA's security department and thanks to the professionalism of officers of the country's Ministry of Internal Affairs, we managed to reveal and neutralize the international criminal group. I would like to emphasize that among the arrested nine participants of transnational group there was no any Azerbaijani national.

And the modus operandi of this criminal group was quite simple. Having established and registered an e-commerce firm in the USA dealing with the purchase and sale through the Internet they launched their web site. And, having developed the special program, they could crack the code number of any credit card used when making purchases at the above-mentioned web-site. Then they fabricated the counterfeit plastic cards and made the purchases in the central shops of the capital. I would like to point out that up until seven years ago it was not hard for swindlers to counterfeit the plastic cards issued by the American and Japanese banks, and to make purchases in Baku.

However, I want to make a point that: neither banks nor Visa International shall incur any liability for such thefts, as far as it is the client's sole responsibility to be very attentive when using the plastic card and not to give it into strange hands even for a short period of time. Besides, it is very difficult to trace such crimes, even despite rather simple, at first sight, schemes of misappropriation of cash resources.

I would like to especially emphasize our very close cooperation with the country's Ministry of National Security (MNS). Thanks to these contacts and support on their part, we feel very confident in working on towards maintaining the security of the biggest bank in our country. Thus, for instance, in 2007, as a result of our joint efforts we revealed and neutralized the well-organized transnational criminal group, which was engaged in counterfeiting the plastic payment cards of the citizens with the subsequent misappropriation of their money. One of leaders of criminal group was our former citizen Vladislav Basin (MNS made an official announcement about this).

This group installed on the automatic teller machines (ATM) the special devices - skimmers, with the use of which the information recorded on a magnetic tape of plastic cards about the money of our clients was copied. While the information about PIN-code they obtained by the means of false keyboard installed by them on the automatic teller machines. These are the well-known means of fraud in the field of plastic payment cards.

However, to reveal them is not so simple. IBA has more than 600 automatic teller machines throughout the country. And you cannot put an employee at each automatic teller machine. Only thanks to the good analytical work, it is possible to find the so-called "traces" of this kind of crime. Of course, thanks to the high professionalism of the officers of the Ministry of National Security, their efficiency and ability to set priority directions in the fight against crimes in the sphere of high technologies, and owing to the joint and coordinated actions it became possible to successfully neutralize the above-mentioned criminal group.

At the same time, it should also be mentioned the following interesting fact that in detecting this fraud also took part the security service of Parex Bank (Riga), with the chief of which I established the close relations during one of the international conferences on security issues, which we actively attend.

By the way, is also worthwhile to mention that the management of IBA displays a special attitude towards participation its employees, in particular, the employees of our department, in various international conferences, seminars, and forums. Owing to this fact, we firmly keep our hand on the pulse of "security industries". Nowadays, in the time of global financial crisis the Bank's management set a very important objective regarding the implementation of additional measures aimed at protection of financial documents from forgery. By the way, this year it is also planned, and we have already started, jointly with the information technologies department, the work aimed at the improvement of local area network architecture and introduction of advanced technologies in the field of information security.

- What the success in activity of banks' security departments depends on?
The issue of banking security cannot be concentrated on the activity of one department. The success of our work depends on the well-coordinated work of all departments and structures of IBA. In particular, in 2005, the monitoring carried out by the employees of internal audit department of IBA, revealed misappropriations in the partner shop selected by the Bank within the framework of "Express Credits". In the course of the checks, it was revealed that with the participation of shop's employees, a group of individuals forged the documents by indicating the high wages and misappropriated certain amount of funds.

In this connection, in December 2005, IBA applied to the Prosecutor General's Office with the view of bringing the swindlers to responsibility. As of today, the considerable part of misappropriated money has been returned from the swindlers.

You know, I would also wish to note the following. Speaking about the International Bank, which as know, represents Azerbaijan at many high international levels, you should always keep in mind that the responsibility bar of responsibility with regards to ensuring the security of this financial institution is always maintained at the highest point. And the Bank's management sets the standards exactly at that level and, indeed, we strive for achieving it. We always realize that by ensuring the safety of deposits and savings of our clients, who are mainly the citizens of our country, we ensure their safety as well, and thereby, we participate in a very noble and honorable work aimed at maintaining the security of our country.