Estonian banks are increasing their efforts to combat online fraud by being empowered to stop suspicious transactions and report them to the police. This initiative comes in response to a growing number of scam cases, with over 3,700 victims reporting losses exceeding €29 million in the past year alone. The largest single instance involved a so-called BEC scheme (business email compromise), where a company lost more than €1.7 million due to a fraudulent email mimicking a trusted legal advisor associated with a real estate transaction.

The BEC scam began with an email that appeared to come from a law firm involved in facilitating a foreign property purchase. As the transaction neared completion, the email claimed that banking details related to the transaction had changed and provided new payment instructions, urging the company to transfer funds quickly. Given the previous legitimate communication with the lawyer, the company proceeded with the transfer, only to discover later that it was a scam. This kind of fraud highlights the sophisticated tactics used by scammers and underscores the need for heightened vigilance among businesses.

The move to empower banks aligns with broader efforts by the Estonian government to enhance financial security and protect consumers from the growing threat of cybercrime. By enabling banks to act swiftly to block questionable transactions, the authorities hope to mitigate financial losses and instill greater confidence in digital banking systems. As financial landscapes evolve, it's crucial for both institutions and individuals to adopt robust security measures and stay informed about the risks associated with online transactions.