In an unexpected twist, Jamaica’s banking sector is being shaken—not by cutting-edge hackers or rogue algorithms—but by something far more familiar: paper cheques.
Once considered nearly obsolete in the digital age, cheque fraud has roared back to life, blindsiding financial institutions that have been focused on combating high-tech cybercrime. According to the Bank of Jamaica’s 2024 Financial Stability Report, cheque-related scams have multiplied fivefold, reaching an astonishing J$401 million in just one year—marking the highest loss from cheque fraud in over half a decade.
The Fraud Landscape Is Evolving—And Regressing
While banks have been investing millions in cybersecurity infrastructure to secure mobile banking apps and online platforms, criminals have shifted tactics—revisiting outdated but effective schemes.
“We’re seeing fraudsters pivot away from card cloning due to advancements like chip-and-pin. Now, they’re exploiting traditional channels that haven’t evolved as quickly—like cheques,” said Deputy Governor Jide Lewis of the Bank of Jamaica.
Credit card fraud remains the leading contributor to losses, but the revival of cheque schemes is an uncomfortable reminder: innovation in banking doesn’t mean old vulnerabilities vanish. In fact, they often resurface when attention shifts.
A Closer Look at the Numbers
The total value of financial fraud in the banking sector soared to J$1.73 billion as of March 2023, nearly doubling its 2019 figure. Of this, J$1.225 billion was attributed to digital channels—credit cards, debit cards, and online banking platforms.
Though digital scams remain dominant, the growing weight of cheque fraud means banks are now fighting battles on two fronts—legacy fraud and emerging cybercrime.
Adding to the strain are physical attacks. Over J$145 million was lost through armed robberies, including incidents targeting ABMs and cash-in-transit carriers—a sobering reminder that financial crime in Jamaica spans both the virtual and physical worlds.
Low Usage, High Risk
What makes the rise in cheque fraud more puzzling is the relatively low demand for chequing accounts in the country. Audrey Tugwell Henry, President of the Jamaica Bankers Association and CEO of Scotia Group, pointed out the contradiction at a recent AGM.
“Cheque usage is already minimal among our clients, but the risk attached to those few instruments is growing rapidly,” she said, hinting that industry-wide changes may be on the horizon.
Looking Ahead: AI in the Crosshairs
While traditional fraud takes the spotlight, global trends indicate Jamaica’s next major threat could come from artificial intelligence. Criminal groups are using generative AI to simulate human voices, forge identities, and develop convincing scams at scale. Feedzai, a global fraud prevention company, reports that AI is now a factor in over 40 percent of fraud incidents globally.
Though Jamaica hasn’t yet felt the brunt of AI-powered financial crime, the BOJ is on alert. Lewis emphasized that while AI fraud is not currently a major local issue, it’s only a matter of time.
“Our systems aren’t as heavily digitized as those in more developed economies, which buys us time—but not immunity,” he warned.
A National Strategy for Resilience
In anticipation of rising threats, the BOJ has rolled out new cybersecurity standards under its Standard of Sound Practice on the Management of Cyber Risks, mandating stricter authentication, faster fraud detection, and greater data sharing between institutions.
The bank has also launched CIISI-JM—a cyber intelligence network designed to allow institutions to pool threat data, coordinate incident response, and build sector-wide resilience.
Final Thoughts
From cheque books to chatbots, the spectrum of financial fraud in Jamaica is growing both wider and more complex. As the country’s banking system becomes more digitally interconnected, the irony remains: it’s the simplest loopholes—like a forged cheque—that may prove the most costly in the short term.
What’s clear is that in a world driven by AI, paper still has power—and Jamaica’s financial institutions are now racing to cover both ends of the spectrum.
