KFH: Raising Customers’ Awareness on the Risks of Investment in Virtual Assets

Executive Manager - Money Markets at Kuwait Finance House (KFH), Khalid AlRukhayes said that banks provide multiple investment channels for their customers including deposit accounts and investment funds in addition to various investment opportunities which are safer than investment in virtual assets e.g., 'Bitcoin' and other Cryptocurrencies which are not under CBK control. Accordingly, these currencies are construed as a high risk and ambiguous investment channel.

This statement was made in a press release highlighting KFH continued efforts to support and enhance the banking awareness campaign 'be aware' which was released recently by CBK in cooperation with the Kuwait Banking Association to enhance financial knowledge for different tiers of society and achieve the best benefit from all types of banking services.

AlRukhayes added that KFH is keen on raising customers' awareness on the need to be fully aware of the risks resulting from investment in virtual assets which are not subject to regulatory laws e.g. customers incurring losses and the inability to protect them from any fraud which they may be exposed to at any time.

AlRukhayes emphasized that virtual currencies value may fluctuate significantly in a short time due to the difficulty to monitor or supervise them by any authority. Local banks are continuing their endeavor to raise the awareness of all their customers and ensure that all precautionary procedures are taken to avoid these significantly high risks.

The 'be aware' campaign targets various elements including customer's awareness of his rights regarding personal finance operations whether consumer or residential, the mechanism to file a complaint about banking services, different banking cards, and the means to avoid fraudulence operations and awareness regarding the risks of loan encashment , high risk investments and other related issues.

KFH works always on organizing training courses for its employees to increase their experience level in fraudulence operations and combating financial crimes, especially, electronic ones, and encourages them to transfer these information in a simplified manner to customers through direct contract in the service centers, social media channels and various electronic channels of the bank.

The campaign 'be aware' aims to enhance and support the goals of the Central Bank of Kuwait and its social program which aims to spread banking knowledge among society members, increase public awareness on the most important financial issues, the method to protect asset from fraudulence. Also, it aims to highlight the banking sector role in general and the banking products provided by the private sector by introducing a set of instructions and information on regular basis through social media in cooperation with Kuwait banking association and local banks. The campaign shall continue till the end of this year.