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Geopolitical threatDutch banks will advise consumers to keep cash at home due to increased geopolitical threats, a spokesperson for the Dutch Banking Association (NVB) says. It is the first time that banks have issued such advice. Insurance companies warn of the risks of theft that come with this.
After the Christmas holidays, the banking association will consult with the Social Consultation on Payment Transactions (MOB). Social organizations such as senior citizens’ organizations and the Consumers’ Association, but also the Dutch Payments Association and interest groups such as Koninklijke Horeca Nederland and MKB-Nederland work together in this.
“We will provide comprehensive advice on how to best arrange your financial affairs, should there be problems with the payment infrastructure. This could be about cash and how much it should be. But also about maintaining an additional bank account or credit card,” the NVB spokesperson told ANP.
Minister of Defense
Defense Minister Ruben Brekelmans said last Sunday in WNL on Sunday that the Netherlands should prepare for all possible war scenarios due to the Russian threat. He also advised to always have some cash at home.
The NVB does not know whether people have already withdrawn additional savings. “We have no insight into that. But if everyone withdraws some money from their savings account, you will not immediately see that reflected in huge figures,” the spokesperson believes.
He emphasizes that banks are ‘very well prepared’ for all kinds of threats such as cyber attacks, which means that customers’ savings are always safe. “Cyber resilience has been a top priority for banks for years. Banks inform each other about incidents, analyze them together and share effective countermeasures,” the spokesperson emphasizes.
The Dutch Bank
In October, De Nederlandsche Bank (DNB) also advised that it is wise to always have some cash at home in case of a cyber attack.
The advice of the Social Consultation on Payment Transactions is expected to be published in the first quarter. A date is not yet known.
Up to 500 euros reimbursed
Although banks are advising people to keep cash at home as a precaution against international threats, the Dutch Association of Insurers warns of the risks involved.
“Cash in the house is in principle covered by your home contents insurance, but there are limitations,” says a spokeswoman for the insurance association. According to her, compensation for stolen cash usually varies between 250 and 500 euros, depending on the insurer. “If you have large sums of money in your house, this can lead to disappointments in the event of a burglary.”
In addition, the Association emphasizes that it is often difficult to prove exactly how much cash was in the house at the time of a burglary. This can lead to complications when submitting a claim for damages. The risk of a burglary also increases if burglars know that there is a lot of cash present, which can endanger the security of homes.
“The advice is therefore to look carefully at the policy conditions of your home contents insurance and to realise that cash is often only covered up to a certain amount,” the spokesperson concludes.