Phone Scams Rise 30% as Bank Fraud Goes Low-Tech

With today’s financial institutions ever-watchful about potential electronic security events across banking channels, fraudsters are becoming more creative in the ways they try to get sensitive information from people, including FI call center employees. Part of the reason for this shift is FIs’ desires to provide an easy, pleasurable customer experience, which can create unintended circumstances.

With FIs’ focus on customer satisfaction and ease of use, and not necessarily fraud detection (although that is important as well), there can be opportunities for fraudsters to game the system. One way that banks and credit unions can thwart nefarious actions is to increase their use of multifactor authentication, including harder challenge questions, including information about current account events that only customers would know. Questions about recent deposits or withdrawals or cleared checks for example, would make it more difficult for fraudsters to compromise accounts. Such techniques can offer enhanced security, without creating a negative customer experience.

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