The flood waters have not receded yet.
In Florida, this devastation has not been fully accounted for, and its costs have not been fully accounted for. Everything takes time.
But scammers are already on the case, as they seek every opportunity to find the most vulnerable potential victims to escape the effects of Hurricanes Milton and Helen, says Featurespace founder Dave.・Mr. Excel told Karen Webster.
At the same time, governments and banks are tasked with urgently getting funds, including relief payments and disbursements, to individuals and families who may be less wary of fraud than usual under the stress of recovery efforts.
“The volume of messages sent by scammers will be trying to prey on people, and (the messages) may target specific locations with the most devastating impact,” Excel said. said.
This technique is proven, and uses text messaging, phone calls, and synthetic IDs to give scammers access to needed generators and building materials in their communities.
Beyond the immediate opportunities presented by natural disasters, fraud is a long-standing and pervasive trend. A joint study by PYMNTS and Featurespace found that 3 in 10 U.S. consumers have been the victim of fraud in the past five years, with a median loss of $545.
“They’ll pick what’s in short supply,” he says.
Beyond the economic impact
The impact extends beyond the individual’s wallet.
More than half of victims consider switching banks after being scammed, and 30% leave their bank. Banks will then have to scramble to replace those customers and repair the damage to their reputations. More than half of people who have been victims of fraud say their mental health suffers because they feel some responsibility for being victimized in the first place.
“Most consumers have multiple relationships with different banks and will quickly switch between them based on where they feel they have the highest level of trust in the relationship,” Excel said. said.
He said banks should “slowly” begin taking gradual steps to address the financial and psychological trauma of such losses.
Against this backdrop, there are many changes that banks can make about their relationships with customers. This allows the bank to maintain or regain its position as a trusted source of information even if potentially suspicious activity is involved and a customer falls prey to criminal activity. . Said.
It’s a low hanging fruit. Banks need to get rid of the stigma of coming forward.
Fraud may be significantly underreported because customers are gun-shy and embarrassed that they’ve been fooled. In addition to that underreporting, banks may not realize how vulnerable their customers (and they) are.
Mr Exel said much could be improved if banks ran education and awareness campaigns to emphasize that fraudsters are sophisticated and there is no shame in reporting fraud. Banks can and should highlight their successes in deterring fraud and how that information can be used by law enforcement.
Some technologies go beyond education to monitor a variety of day-to-day interactions between customers and their banks, providing “subtle messages” along with validation of legitimacy and providing an understanding of why transactions are taking place. Masu. He said the right level of friction could be created with the help of artificial intelligence and other advanced technologies.
Such anti-fraud measures have become a key customer expectation. PYMNTS and Featurespace found that 59% of fraud victims choose fraud detection and monitoring technology as their most important safeguard.
He said there are twofold benefits to using adaptive behavior analysis. Friction doesn’t always occur, but customers can have the peace of mind that if something unusual happens, the bank will step in and keep them safe.
For example, when a consumer purchases a home, a large wire transfer may occur. Are banks aware of the process, rather than simply increasing friction due to the size of transactions? Featurespace, which uses machine learning and real-time analytics to analyze consumer and payment behavior, He said it can provide context and show how to “handle” that transaction.
“We need that extra level of guarantee that banks can provide,” Excel told Webster.
See more: Banking, Banking, Dave Excell, Spending, Featured News, Featured Spaces, Scams, News, PYMNTS News, PYMNTS TV, Scams, Security, Videos
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