Central Bank of Armenia is examining vulnerabilities in online lending due to fraud

YEREVAN , March 24. /ARKA/. Armenia’s Central Bank is investigating possible vulnerabilities in the protection of online express lending systems due to the increasing number of fraud cases, Central Bank head Martin Galstyan said.

“If it turns out that banks did not install mechanisms of appropriate security and citizens suffered damage, compensations will be paid. However, according to preliminary estimates, mostly citizens themselves provide fraudsters with all the necessary personal data,” Galstyan said at a session of the National Assembly’s committee on financial-credit and budgetary issues on Monday.

According to him, the regulator is aware of the problem and a discussion has already been organized with citizens who have become victims of fraudsters.

“According to the results of preliminary discussions with banks, it turned out that unfortunately, in the vast majority of cases, people themselves provide their personal data to fraudsters, which allows them to get access to citizens’ personal financial space without any problems,” Galstyan said.

According to him, it is possible to eliminate the system of  online loans altogether, but then citizens will face new difficulties.

“It will mean that they will have to go to the bank in person, which will lead to additional expenses and loss of time,” Galstyan said.

Regarding discussions on the topic, the head of the regulator said that when certain proposals are ready, they will be presented to the public.-0-

spot_img

POPULAR

Armenia’s risk premium increased amid events in the Middle East – Galstyan

The risk premium in Armenia has increased slightly due to events in the Middle East, although not as much as in other countries in the region and beyond, stated Martin Galstyan, head of the Central Bank of Armenia.

Armenia to Receive €120 Million Loan and €15 Million Grant from KfW Bank for Power Grid Connection with Georgia

At a meeting on Thursday, the Armenian government approved the signing of a €120 million loan agreement with the German bank KfW for the "Caucasus Transmission Network - NIF" project to connect the power systems of Armenia and Georgia. Additionally, a €15 million grant agreement with KfW was approved for the "EU Caucasus Transmission Network - NIF. Phase II" project.

Armbanks Weekly Digest: Key Events in Armenian Financial Market (March 9–14) 

The past week in the Armenian financial market was marked by discussions of capital market development prospects at a specialized international conference, regulatory initiatives from the Central Bank, and changes to the insurance system.

Food and non-alcoholic beverages accounted for approximately 59% of Armenia’s inflation in February – WB

n February, inflation in Armenia rose to 4.3% (y/y) from 3.8% (y/y) in January. According to the World Bank's "Armenia Monthly Economic Update – March 2026," food and non-alcoholic beverages continued to be the largest contributors, increasing in price by 6.5% and contributing approximately 59% to overall inflation.

Maximum insurance compensation limits in Armenia’s compulsory motor third-party liability insurance (CMTPLI) system will increase starting April 1

Amendments to the rules of the compulsory motor third-party liability insurance (CMTPLI) system will come into effect in Armenia on April 1, 2026, providing for an increase in maximum insurance payout limits, according to the Bureau of Motor Insurers of Armenia.

LATEST NEWS

spot_imgspot_imgspot_img