Digital Ruble susceptible to fraud – ARB
· Official feedback from the Association of Russian Banks indicate risks associated with the Digital Ruble.
· The study observed that these risks are similar to those common in digital transactions.
· Risks apply to all models proposed by the Bank of Russia.
According to reports released by the Association of Russian Banks, ARB, the country’s Digital Ruble might be exposed to certain risks. The report comes as a response to Russia’s dossier on the development of its digital project. The papers were released on October 13, 2020, with descriptions of processes facilitating Digital Ruble use.
Offline transactions pertaining to the Digital Ruble poses risks
According to the Bank of Russia, bank users with the Digital Ruble users will have access to their funds on mobile-based e-wallets. The listed features would also be made available both online and offline use. However, the ARB points out that cybersecurity and fraud-related risks would pertain to the Digital Ruble type cited in the papers. The majority of ARB members shared this sentiment in the official report published on January 13.
The study, which included as many as 17 ABR credit institutions present in Russia, also reiterated other risks unique to digital transactions. They include risks peculiar to cashless transactions where cards and cryptocurrencies are utilized.
ARB outlines risks to security in Digital Ruble
According to the release, these risks range from money to theft via hacking. It also includes harmful agents having unauthorized user access and launching attacks. In the published report, offline digital payment makes it difficult for fraudulent transactions to be monitored by regulators. According to consensus, it would make the specific model particularly dangerous.
In his statement, Dmitry Peskov, who represents the Russian President on digital and technological development, acknowledged these risks. In his words, however, Russia should not have to rush things.