FICO Survey: Brits Call for Stronger Protection as One in Four Report Scam Losses
As real-time payments surge in the
More information: https://www.fico.com/en/latest-thinking/ebook/2024-scams-impact-survey-uk
About three-quarters of consumers in the
“The need to stop scams has never been more urgent,” said
Key findings:
- More than a quarter of consumers (26%) say they’ve reported losses from a scam to their bank
- 54% of consumers say they believe they should be responsible if they fell for a scam; nearly a third blame either the sending bank (19%) or the receiving bank (13%)
- 73% of consumers thought banks should refund scam victims always (31%) or most of the time (42%)
- 58% of consumers ranked having better fraud detection systems as the most or second-most impactful action that banks can take to protect them from scams
- Nearly two-thirds of consumers say they would complain to their bank and 23% to regulators if they are unhappy with how a scam incident is handled.
Taking Steps to Stop Scams
Unscrupulous criminals will go to great lengths to con bank customers, often socially engineering personal information from their victims to commit APP fraud. Yet, according to the FICO research, over half of consumers (54%) feel they are responsible if they fall for a scam; only 9% blame the scammer. Add to this the fact that 73% of consumers in the
“Financial institutions should focus on mitigating fraud at the front end. They play a crucial role in identifying and intervening in scam transactions,” Cox said. “It’s vital that consumers remain confident enough to take advantage of the benefits of real-time payments, such as immediate transfers and instant funds availability.”
As RTP usage continues to soar, consumers expect their banks to equip them with the tools, education, and automated fail-safes to help prevent scam losses. “One of the most fundamental ways banks can help to prevent losses is by knowing how their customers want the bank to communicate with them,” Cox said. “The good news is that more
Cox cited the need for fraud detection capabilities such as data ingestion across multiple sources with behavioural profiling to provide rich context about RTP transactions, applying sophisticated analytic techniques capable of detecting suspicious transactions, and automating decisioning to determine the best course of treatment or level of intervention.
“By automating fraud detection at scale, banks can really help to defend their customers’ interests, protect their own bottom line and importantly, build greater trust in the all-important customer relationship,” Cox said.
A new solution from FICO and
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Source: FICO