28 / April / 2026 : 18-49
Karen Adamyan: Compliance Protects the Customer’s Financial Security
In the digital age, banking transactions have become instantaneous. Consequently, cases of financial fraud and scams in the online sphere have also undergone a major transformation. A bank's security is no longer defined merely by reinforced doors and fireproof safes, but by complex algorithms and robust compliance systems.Karen Adamyan, Head of the Compliance Department at Armeconombank, spoke about the most common fraud and scam scenarios in Armenia’s financial system, the necessity of staying "one step ahead" of scammers, and where the Bank’s liability ends and the customer’s personal responsibility begins.
What are the most common fraud and scam scenarios in the Armenian financial system today, and how are they evolving alongside deep digitalization?
Currently, the most common frauds in Armenia are primarily related to the use of various tools in the online environment. Specifically, social engineering is widespread; scammers call victims pretending to be employees of a bank, a telecommunications company, or the Central Bank of Armenia. They use various pretexts - such as the need to configure 5G services, protecting personal banking data, or suspension of access to accounts - to extract personal information. SMS and Email Phishing are also frequently used within this scenario.
Online fraud is often carried out through Identity Theft. By gaining access to a customer's banking data, fraudsters can apply for loans in that person's name or transfer their data to others - even opening and using accounts and cards for various unauthorized transfer schemes.
Online offers targeting specific social groups are also common. Using fake websites, scammers offer "fast, affordable loans," lucrative investment or crypto deals, or proposals to "rent" banking data. People, expecting "passive income," often find themselves drawn into these fraudulent schemes.
Fraudulent giveaway and prize claims are on the rise, often using spoofed websites and social media pages designed to look exactly like those of banks or famous brands. Technological frauds such as SIM swapping are also being employed, where attackers gain access to the customer's device to monitor SMS codes, OTPs, and phone calls.
A classic type of fraud remains Card Fraud, involving the use of card data for unauthorized payments and transfers.
These scenarios are generally applied in various combinations. It should be kept in mind that fraud organizers possess vivid imaginations, are well-trained psychologists, significant resources, and possess advanced technologies. They consistently test both the tools of financial system participants and the scenarios they have developed.
How does Armeconombank balance simplicity and speed for customers with strict banking security requirements?Safe and high-quality customer service is our priority in any situation. We recognize that speed and simplicity are crucial today, and we strive to provide them while maintaining security. To improve customer service and operational efficiency, modern banking focuses on the 3 S’s concept: Speed, Simplicity, and Security. To implement this, the Bank utilizes the following core approaches:
Risk-Based Checks: Control resources are directed toward high-risk activities, applying additional verification mechanisms where necessary.Multi-level, Multi-factor Authentication (2FA): Utilizing Passwords + OTP / Identification.Real-time Monitoring: Behavioral and targeted analysis.Limits: Daily volume and transaction-based limits.Advanced Technology: Face ID and Push confirmations.
For the customer, the process remains fast and simple, while internally, a rigorous security system operates - one that is essentially technological and preventative.People continue to fall into the most naive traps, such as sharing passwords over the phone. Where does the Bank’s liability end and the customer's personal responsibility begin? How does the bank protect the customers from their own mistakes (when the customers voluntarily provide their password to fraudsters)?
As mentioned, the Bank offers secure mechanisms, multi-factor authentication, limits, risk decoding, and automated monitoring of suspicious transactions. We attempt to respond quickly and, whenever possible, prevent loss - for example, through temporary account restrictions or blocking. However, it should be noted that the Bank’s liability ends the moment a customer voluntarily provides their password or confidential data to a fraudster.
Compliance is often perceived as a "bureaucratic process." How do you help customers understand that every extra question or check is a security guarantee, not an obstacle?
Compliance does not "block" the customer; it creates a protective layer for their financial security, and this needs to be communicated openly and clearly. Specifically, customers are provided with simple and understandable explanations as to why additional questions or checks are required and what specific mechanisms (2FA, Push confirmations, biometrics) are designed for, taking into account the nuances of handling information in such cases.
Essentially, the first preventive steps are targeted educational initiativesmeasures aimed at increasing public financial literacy and awareness of fraud mechanisms, such as . Public awareness campaigns like "Du Mi Asa" public campaign, conducted implemented by the Union of Banks of Armenia. I am confident that consistent measures will yield a positive impact over time.
It is often quite difficult to distinguish between the victim and the involved participant (such as a "mediator" or middleman) in the initial stages of fraud, and the toolkit provided by RA legislation does not always offer effective solutions. In this regard, the preventive toolkit needs improvement - specifically, there is a need for longer-term tools for applying restrictions.
Parallel to preventive measures, it is necessary to review and tighten the punitive toolkit, especially regarding so-called "intermediaries" (droppers) which have become increasingly widespread in Armenia in recent years. Droppers are individuals used by fraudsters to transfer, withdraw, or cash out stolen funds from accounts. I believe corresponding changes to the Criminal Code could have a positive impact on combating this phenomenon.
Currently, active discussions are also underway regarding the introduction of Insurance/Zero Liability mechanisms to minimize potential customer losses.
In summary, the fight against financial fraud requires a systemic approach to create a secure and trustworthy financial environment.
86 86 | aeb.am
Armeconombank is supervised by the Central Bank of Armenia.
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