National internet fraud reporting centre and customer due diligence

News
Datum 28 mei 2020

The coronavirus crisis has caused significant growth in the number of reports about rogue online traders. Reports filed with the National Internet Fraud Reporting Centre and the verification facility available on the Dutch police's website allow banks to search their customer portfolios and perform adequate customer due diligence.


More than EUR 25 billion worth of products and services are traded over the internet in the Netherlands every year. Amid a variety of e-commerce consumer services, consumers and financial institutions alike are exposed to a multitude of fraud and cyber risks. Remarkably, a significant increase in the number of reports about rogue online traders can be seen during the coronavirus crisis. The Dutch police has set up the National Internet Fraud Reporting Centre to combat online fraud and scams more effectively. One of the Centre's recent actions is setting up a partnership with various public and private parties in a bid to coordinate the fight against internet scams and make it more efficient and effective.

Businesses and citizens can report scams by fraudulent online traders on the website of the Dutch police. In 2019, the Centre received around 58,000 reports. It analyses and links the reports to establish the identities of rogue traders, particularly frequent offenders. If the Centre finds that a trader is a customer of an affiliated bank, it notifies that bank.

The National Internet Fraud Reporting Centre has also made a verification facility available on the website of the Dutch police. This allows potential customers to verify whether any reports on scams have been filed for a particular online trader, based on that trader's details, such as email address, bank account number, telephone number or URL. In addition, reports filed with the Centre and the verification facility allow banks to search their customer portfolios and perform adequate customer due diligence. Any unusual transactions related to rogue online traders must also be reported to the Financial Intelligence Unit (FIU-NL). The Centre's services enable citizens and financial institutions to make an informed decision as to whether they wish to trade or enter into a customer relationship with the trader concerned.