RIYADH. The Saudi Central Bank (SAMA) has banned financial institutions from using instant messaging platforms such as WhatsApp for customer communications, citing critical security vulnerabilities and non-compliance with data protection standards. The directive, issued under SAMA’s regulatory authority, mandates banks to adopt secure channels like chatbots or live chat systems withing official app or websites of financial institutions to safeguard sensitive interactions. The move comes amid rising fraud schemes targeting users through social media and messaging platforms.
SAMA’s prohibition targets widely used apps deemed “unreliable” for transmitting financial data, emphasizing the need for encrypted, institution-controlled communication tools integrated into official banking apps or websites. Financial entities must ensure these alternatives adhere to Saudi Arabia’s personal data protection laws.
The decision aligns with heightened efforts to combat financial fraud. Recently, the Banking Media and Awareness Committee of Saudi Banks warned of scams involving impostors posing as charities or public figures. Fraudsters lure victims with fake offers of financial aid, using forged documents and urgent payment demands via unsecured bank transfers or fraudulent links.
Fraudsters exploit trust in reputable organizations to manipulate victims into sharing funds or personal details, the committee stated in a public advisory. Common tactics include impersonating charity representatives or influencers, pressuring targets to pay processing fees through untraceable methods. Victims of financial scams are instructed to immediately contact their bank to freeze accounts and initiate recovery protocols.