Ghada Ismail
Across Saudi Arabia, the way people handle money has undergone a quiet revolution. Tapping your phone to pay for coffee, transferring cash through a wallet app, and getting a loan without stepping into a bank, these are now part of everyday life. Over just five years, the Kingdom’s fintech sector has surged forward, reshaping how people save, spend, and invest.
The numbers reflect this momentum. According to the ‘Setup in Saudi’ website, the number of active fintech companies in the country jumped from 89 in 2022 to over 200 fintech firms as of August 2023. Digital-first banking, robo-advisory tools, and BNPL (buy-now-pay-later) platforms are gaining traction not just in Riyadh or Jeddah but across a much broader swath of the population.
But while fintechs have made finance more accessible, they’ve also created new openings for fraudsters.
As fast as platforms evolve, scammers adapt. No longer content with crude spam messages or clumsy impersonation attempts, they’re now deploying far more sophisticated tactics: hijacking OTPs, creating near-perfect fake apps, and launching social engineering scams that are tailored to Arabic-speaking users.
These attacks aren’t random. They’re calculated, localized, and alarmingly effective.
In a country where digital trust underpins an increasingly cashless economy, even a single breach can ripple far beyond the victim. For fintechs, the challenge is not just about securing systems, it’s about preserving confidence.
That’s why a new wave of innovation is taking shape: that’s FraudTech, a growing arsenal of technologies designed to detect and block fraud before it strikes. AI-driven threat detection, biometric verification, and behavioral analytics are becoming essential weapons in the fight against a smarter, faster breed of financial crime.
In today’s Saudi fintech landscape, the real arms race isn’t over who builds the flashiest app—it’s over who can build the safest one.
Inside the Modern Scam: What Fraud Looks Like in 2025
Gone are the days of laughably fake emails and “you’ve won a prize” messages. Today’s scams are sharper, better disguised, and more emotionally manipulative.
Across Saudi Arabia, users are being targeted with Arabic-language phishing messages disguised as official alerts from banks, government portals, or shipping services. Often sent via SMS or WhatsApp, these messages lead to malicious links or request seemingly harmless details, like a One-Time Password (OTP). In reality, that OTP is often the last step before someone’s account is drained.
Fake apps are another growing threat. These replicas of popular fintech platforms are nearly identical to the real thing, right down to the colors, layout, and fonts. Once installed, they harvest credentials and silently pass data back to cybercriminals.
Even more concerning is the rise of AI-enhanced fraud. Deepfake audio and video, cloned voices of bank agents, and personalized spear-phishing campaigns are creeping into the ecosystem. These tools make it increasingly difficult to tell the difference between a genuine call and a scam.
And then there’s social engineering, where the attacker’s strongest weapon is human emotion. A panicked call from someone claiming to be a relative in trouble. A friendly “customer service agent” helping you resolve an urgent issue. The goal isn’t to hack your phone, it’s to hijack your trust.
This new era of fraud is no longer just a tech problem. It’s a human one.
How Saudi Fintechs Are Fighting Back
In response to these rising threats, Saudi fintechs are stepping up with a new mindset: prevention by design.
Artificial Intelligence (AI) is now at the core of many platforms’ fraud strategies. These systems aren’t just flagging unusual logins; they’re learning user behavior in real time. If someone who always transfers SAR 200 suddenly sends SAR 20,000 to a new international account, the AI doesn’t just log it; it can freeze it, verify it, or block it altogether.
Biometric tools like fingerprint scans and facial recognition are becoming standard across many Saudi fintech apps. They provide an added layer of protection that can’t be phished or guessed.
But it doesn’t stop there. Behavioral biometrics—tracking how you hold your phone, how fast you type, or how you swipe—adds another invisible shield. These patterns are unique to each person and difficult for fraudsters to mimic.
Local players like Hala, Tweeq, and stc pay are investing heavily in fraud detection infrastructure. stc pay has publicly launched anti‑fraud initiatives like the “Scam the Scammer” awareness campaign, explicitly stating its ongoing investment in fraud prevention and customer security. Additionally, STC (the parent company) has partnered with telecom‑fraud solutions companies like Mobileum and Subex, deploying AI-driven systems to detect and prevent fraud across its network. Some have partnered with international specialists like Feedzai and BioCatch, which provide advanced, AI-powered fraud monitoring tailored for the financial industry.
What used to be back-end security is now a frontline feature. In a crowded fintech market, platforms that offer visible, transparent protection stand out. For users, safety has become just as important as speed or convenience.
Regulators Join the Fight
The battle against fraud isn’t being fought by fintechs alone.
The Saudi Central Bank (SAMA) has taken a proactive stance in fraud prevention by issuing a comprehensive Counter‑Fraud Framework and Fundamental Requirements, compelling banks and fintechs to implement real‑time monitoring, conduct frequent control maturity assessments, and submit roadmaps for compliance by June 2023. These requirements include board oversight and ongoing reporting obligations.
The National Cybersecurity Authority (NCA) stands alongside SAMA in safeguarding Saudi Arabia’s digital infrastructure and coordinating cyber threat response across sectors. Working together, these regulators deliver unified frameworks—such as SAMA’s Cybersecurity Framework and NCA’s Essential Cybersecurity Controls—that reinforce collaboration across finance, telecom, and critical infrastructure providers.
A. SAMA’s Cybersecurity Framework
- Strong Customer Authentication (SCA): Mandates two-factor authentication (2FA) for all digital payments.
- Fraud risk assessments required for fintech licensing.
- Real-time transaction monitoring enforced for all payment providers.
B. National Cybersecurity Authority (NCA) Initiatives
- "Kafalah" program: Aims to protect consumers from fraud via awareness campaigns.
- Fraud reporting portals allow victims to report scams quickly.
This approach signals a shift: beating fraud isn’t about acting alone; it’s about acting together.
Public awareness campaigns have also ramped up, with simple, clear messages targeting everyday users. Whether it's an ad reminding you to never share your OTP or a video warning against fake apps, education is becoming part of the strategy.
Users: The First Line of Defense
Despite all the tech defense systems, one uncomfortable truth remains: people are still the easiest target.
Fraudsters don’t need to break into your system if they can simply trick you into opening the door. A well-timed scam call or convincing SMS is all it takes for many users to unknowingly give away critical information.
Recognizing this, fintechs are redesigning how they interact with users.
Some apps now display real-time warnings when a user tries to transfer money to a flagged account. Others introduce delays for unusually large transactions, buying time for users to reflect or cancel. Educational nudges, trust scores, and interactive security tips are also being embedded into user journeys.
In parallel, many fintechs are taking to social media, posting bite-sized Arabic videos that explain new fraud techniques, scams to watch for, and tips for safer banking.
Educating and Protecting the User
A. How Fintechs Are Raising Awareness
- In-app scam warnings pop up during risky transactions.
- Interactive tutorials teach users how to spot phishing attempts.
- Gamification: Some apps reward users for completing security training.
B. What Users Must Do
- Never share OTPs or passwords, even with "bank agents."
- Verify app legitimacy before downloading (check developer names, reviews).
- Enable biometric logins for added security.
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The goal is simple: build habits, not just awareness.
Because in the fight against fraud, an informed user isn’t just a customer; they’re a partner.
Smarter Threats, Smarter Defenses
The fraud landscape isn’t standing still, and neither should Saudi Arabia’s fintech sector.
With generative AI, scammers can now create realistic fake identities, impersonate company executives, and automate social engineering campaigns at scale. We’re entering a time when a video of your CFO asking for a wire transfer might not be real, and you may not know until it’s too late.
To stay ahead, fintechs must treat security as a product, not a feature. That means real-time monitoring, regular penetration testing, strong collaboration across sectors, and above all, user-centric design that keeps protection seamless but effective.
In a future shaped by mobile-first banking, open APIs, and digital identity, Saudi fintechs won’t just be judged by how fast they grow, but by how securely they scale.
Conclusion: A Secure Digital Future for Saudi Arabia
Saudi Arabia’s fintech revolution is unstoppable, but so is financial fraud. The Kingdom is fighting back with strong regulations, AI-powered FraudTech, and consumer awareness.
The next phase will require even smarter defenses as criminals leverage AI. Yet, with SAMA, NCA, and fintech innovators working together, Saudi Arabia is well-positioned to become a global leader in secure digital finance.
The message is clear: Fraud is evolving, but so are the tools to stop it.
