Advisory and Recommendations on Preventing Fraudulent Transactions 



Willemstad/Philipsburg – The Centrale Bank van Curaçao en Sint Maarten (CBCS) issues a vital  advisory to all consumers and businesses regarding the risk of fraudulent activities in various  digital transactions. These criminal activities pose a significant threat to our financial and  economic stability of our communities by exploiting stolen data to make unauthorized  transactions.  

Fraudulent activities in digital transactions not only result in direct financial losses for consumers  but also cause increased transaction declines, high chargeback rates, and additional expenses for  merchants. Such activities compromise the integrity of our financial systems and can disrupt  legitimate business operations while eroding consumer trust in digital transactions. 

Recommended Consumer Protection Measures  

In response to the growing threat of fraud, the CBCS strongly advises consumers to adopt the  following protective measures against fraudulent transactions: 

Be alert  

What might appear to be a legitimate call or e-mail from your financial institution, asking you to  disclose your personal (bank) information, may be a fraudulent attempt from a hacker. Be aware  that no financial institution will ever ask you to give sensitive information that way. Contact your  financial institution if you are unsure about the legitimacy of a caller or e-mail.  

Regularly Monitor your Financial Statements  

Early detection is key to preventing further misuse of your financial information. Regularly review  your (bank) statements to identify any unauthorized transactions. If you notice an unauthorized  payment, contact your financial institution immediately. 

Set Up Transaction Alerts  

Enroll in your financial institution’s transaction alert service. Receiving real-time SMS or email  notifications of any activity on your account can be crucial for the timely detection of fraudulent  transactions.

Utilize Secure Payment Methods 

Two-factor Authentication (2FA): Activate 2FA on all online accounts and shopping platforms. By  implementing 2FA, you will need to comply with a second method of authentication to access  your account besides your username and password. Examples include getting a verification code  by e-mail or SMS, a fingerprint scan, or even a special app on your device. 

HTTPS Protocols: Ensure that any website you make transactions on is secure by checking for  ‘HTTPS’ in the website address (URL), which indicates an encrypted connection. For example:

Virtual Private Networks (VPNs): Use VPNs when accessing the internet through public or  unsecured Wi-Fi networks to protect your personal and financial information from cybercriminals. A virtual private network is a mechanism that provides a secure connection between a device and  a computer network, or between two networks.  

Recommended measures for Businesses and Technology Partners  

Merchants and payment service providers are urged to implement robust fraud detection and  prevention mechanisms. Security features such as Address Verification Systems (AVS), velocity  checks, and Payment Card Industry Data Security Standard (PCI DSS) compliance are essential to  mitigate the risks associated with fraudulent activities.  

Web developers must ensure that payment gateways are equipped with the latest fraud detection  technologies, including Completely Automated Public Turing test to tell Computers and Humans  Apart (CAPTCHA) systems, to effectively prevent automated and manual fraudulent activities. 

Commitment to Secure Transactions 

As the regulator and safeguard of financial stability, the CBCS emphasizes the importance of  collaboration with all stakeholders in combating cybercrime. We remain committed to ensuring a  secure transaction environment for our consumer and business community by promoting an  efficient and effective payment system. To this end, separate legislation for Payment Service  Providers (PSPs) has been developed and is in legislative process to be enacted. The National  Ordinance on the Supervision of Payment Service Providers (NOSPSP) will provide a stronger  regulatory framework for PSPs.  

The CBCS urges everyone to stay informed about the latest security threats and prevention  techniques by regularly visiting the websites and social media platforms of the CBCS, your local  bank or service provider, and financial education platforms.