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The Feedzai suggests that scammers are taking advantage of the growing awareness barrier about theft, emphasizing the urgency for banks to inform and safeguard their consumers with technological advances.
Although 56% of the people surveyed said they have fallen prey to a financial scam, the poll shows that a lot of people remain without the knowledge necessary to recognize and differentiate between different kinds of money laundering.
Consumers Want Someone to Blame
The majority of consumers hold their bank responsible for reimbursing them in case of scams or third-party fraud. If not reimbursed, 77% of customers may switch banks. Romance scams are the most reported type of scam, with 36% of repliers having personal or known experience.
These attacks prey on vulnerable people and can cause major monetary losses. The Feedzai study shows that financial crime also includes the use of financial mules, people whose bank accounts are utilized for fraudulent money transfers, and are becoming more important to cybercriminals’ business models.
Scammers Search for Easy Targets
US consumers are being targeted as money mules by fraudsters, with almost half being approached to receive funds, and 24% unaware of the risks. In the UK, only 35% have been approached, with 17% unaware of the risks.
Online platforms are the optimal targeting method for fraudsters, 42% of respondents reported being contacted via social media. Emerging technologies like ChatGPT pose challenges for banks in tackling financial crime. Banks must embrace AI to protect their customers and increase loyalty, with 53% feeling more secure when their bank uses AI.
Customer allegiance depends on the AI accuracy
Maintaining accuracy in the use of AI is crucial, with almost half of respondents stating that they would consider switching banks if a legitimate transaction was halted, even if it was quickly resolved.
The report emphasizes the importance for financial institutions to give preference to transparency, strong security measures, and specialized communication strategies in order to ensure client loyalty and fulfillment.
According to Pedro Barata, CPO at Feedzai, the report highlights the need for public education on the different types of financial crimes, especially with the rise of digital banking and customers’ willingness to switch banks.
Establishing trust and strong relationships with customers is more critical than ever, and AI and advanced technologies can play a significant role in improving security measures and protecting customers from financial threats.