According to a new analysis by MoneyTransfers.com, fraud losses at British banks increased 8% overall in the year to 1.3 billion pounds.
The CEO of MoneyTransfers.com, Jonathan Merry said, “The scale of financial crime in the UK is now at an unacceptable level. Fraud has a devastating impact on victims, many of whom are left struggling to make ends meet. The government and financial institutions must work together to find a way to protect consumers.”
Fraudsters Getting Smarter
Phishing scams have evolved from yesteryear’s generic “bank impersonation” emails. Email and text message scams pose as your bank, directing you to a site that looks like the real thing. But the moment you click the link, your adversaries begin.
The con game is getting sophisticated. The fraudsters use Artificial intelligence to con banks and their clients. For example, “adversarial AI” has allowed cons to automating gathering information about targets to craft phishing attacks.
Stopping Criminals Without Sending Users Away
Lenders have been battling increasingly complex fraud schemes against their customers for years. The problem has been getting worse as more people conduct their lives online.
However, there are new ways to detect and prevent fraud. For example, machine learning can be used to identify fraudulent behavior patterns. AI services can analyze a user’s digital footprint to help confirm their identity. Also, service providers can use geolocation data to track a user’s movements and thwart fraudsters.
Ultimately, the goal is to protect users without making them jump through hoops. In other words, security must be seamless.
The Way Forward
Financial institutions should tighten their fraud controls for their client’s safety and theirs. The industry should leverage artificial intelligence (AI) and machine learning (ML) technology.
The global fraud intelligence and AI/ML solutions let firms reliably separate between genuine and fraudulent users. It allows them to streamline the user experience for the former group without sacrificing security.
This problem is not going away anytime soon. The best way to protect yourself is to be vigilant. When in doubt, contact your bank directly. Do not click on any links or provide personal information unless you are sure you are dealing with a trusted source. Full story and statistics can be found here: UK Banks Have Reported Fraud-Related Losses of £1.3 Billion in the Second Half of 2022