Watchdog issues instructions to prevent online personal loans fraud
The National Bank of Hungary (NBH) has issued an executive circular instructing banks on measures to prevent fraudsters from taking out personal loans with stolen information, the central bank and financial market regulator said on Thursday.
The NBH instructed banks to allow clients to prohibit any online or mobile applications in their name for personal loans. It also told lenders to put safeguards in place against illicit personal loan applications.
The NBH pointed to cases of fraudsters using information stolen through online scams to take out personal loans as well as targeting victims’ bank accounts.
