Police and the IDF arrested a 22-year old Palestinian Sunday on suspicion that he impersonated Bank Leumi and the Bank of Israel online in order to steal money from clients' accounts.
He is suspected of accessing the accounts with details he obtained from various clients through email.
The banks' clients received messages asking for their account numbers and passwords for "security reasons". A link was provided to websites which imitate those of Bank Leumi and the Bank of Israel.
Last week Bank Leumi issued a statement saying instances of online phishing were increasing, and that the crimes targeted clients of all banks.
"If a client receives an email such as this, there is a chance that it is an attempt at fraud or identity theft," the statement said, warning clients from clicking on the attached link to the fraudulent website.
The Palestinian is scheduled to be brought before a court for the remand of his arrest later Sunday.