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Yehia Aboul Fotouh, Deputy Chairman of the National Bank of Egypt (NBE), stated that the use of cryptocurrencies in certain fraud schemes does not reflect financial innovation, but rather aims to evade regulatory oversight and complicate money-tracing processes.

He warned that such practices represent one of the most serious challenges currently facing financial institutions, particularly as risks increasingly cross borders at high speed and digital crime techniques continue to evolve.

Aboul Fotouh emphasized that combating fraud has become a continuous battle between institutions and fraudsters, noting that “fraud today is an ongoing game—those who fail to stay one step ahead quickly fall behind.” He added that while the methods constantly change, the ultimate objective remains the same: gaining access to funds through banking channels.

He explained that fraudulent messages differ in form and content, but share a single goal—breaching trust and exploiting the financial system. He noted that fraud no longer originates solely within financial institutions, but may begin with non-financial entities and eventually end inside bank accounts, requiring banks to expand monitoring beyond traditional transactions.

Cross-Border Digital Crime Risks

Addressing modern forms of digital crime, Aboul Fotouh cited fake ticket sales schemes as a clear example of how digital crime transcends borders, stressing the need for constant vigilance as risks rapidly move between markets, exploiting regulatory gaps and differing oversight frameworks.

He underscored that strengthening Know Your Customer (KYC) procedures is no longer a formality or a mere regulatory requirement, but a critical necessity for understanding money flows and managing risks. He stressed that deep insight into customer behavior and transaction patterns is the cornerstone of any effective anti-fraud strategy.

Aboul Fotouh concluded by noting that customer protection cannot rely solely on systems and technology, but requires a deep understanding of hackers’ and fraudsters’ mindsets, alongside monitoring developments beyond national borders. Early preparedness, global trend analysis, and proactive risk-management systems, he said, form the first line of defense, emphasizing that trust remains the true foundation of banking sector stability.