FF News | Fintech Finance’s Post

How new rules to protect the victims of text and email fraud will work - The Guardian - This story includes a case study who was caught out in an APP scam, believing he was helping her buy property. New Payment Systems Regulator rules require victims to be reimbursed within five days, capped at £85,000, with exceptions for negligence. Critics say the changes may not fully protect high-value fraud victims as scams grow more sophisticated. Lenvi #fintech #lending #lendingplatforms #consumerlending #loansoftware

#FraudFriday, version 3️⃣: A few weeks ago the Federal Trade Commission released its 2023 scam snapshot. While broader than just the #banking industry, it paints a picture of the importance of prioritizing #fraudinvestigation and #fraudprevention. Deep diving into the top fraud, #imposterscams, these #scams come in all kinds of forms and varieties: 😍 Romance scams are the most common for loss, where scammers create fake profiles and strike up fast-paced relationships with their victims, sometimes communicating with them dozens of times a day to quickly build trust. They make all kinds of promises, and once they’ve gained trust, ask for money - sometimes to help with a plane ticket or other travel or living expense costs. They prey on vulnerable victims including the elderly or lonely. These scams have doubled in the last few years, if you take a look at the numbers: 2021: $547 million reported 2023: $1.14 Billion 🏫Business Impersonations involve gaining access to information, devices, or receipt of funds directly for a victim as a fake representative of a number of organizations, from Geek Squad to Apple or Amazon, or a victim’s bank or even the IRS. In tech support scams it’s common for fraudsters to solve a problem the victim doesn’t actually have by asking them to send funds to remediate the virus or pop up that suddenly displays on their screen. These scams too prey on those who may not be super tech savvy or have family members who might quickly pick up on the red flags. 🆘 Emergency Scams involve the impersonation of a close family member or friend who is in sudden trouble and needs help - bail, attorney costs, or something else involving money and where time is of the essence. These scams prey on the hope that victims will immediately take action without verifying the authenticity of the call or text. The trending thread here is again towards preying on those who are most vulnerable. In each of these instances, scammers target a group of people who may be unwilling to believe they’ve fallen for a scam, and they often tell them not to tell anybody about the relationship or activity. Catching such a broad variety of scam types is not an easy thing for #banks, #creditunions, or their #fintech partners. Many who try to solve the problem turn to tech, and it’s a good move, but not a singular one. Technology partners can amplify the ability to stop activity at the start and identify scenarios worth further investigation, but it’s critical to also retain the human element of #fraud investigators who can read between the lines to identify the red flags and enable the conversations that assist in identifying this type of fraud earlier and more often. Finding fraud and stopping it also involves creating trust to tell the truth between investigators and victims, and it requires a special skill set that goes beyond traditional #costcenter thinking and strategy. It’s why we must continue to change the narrative for these teams.

Barclays have launched Scams Bulletin to provide a comprehensive view of data and emerging scam trends 👏 🔎 🏦 The Bulletin monitors scams claims made across ALL Barclays personal and business current accounts to educate consumers on how to spot and stop scams at the SOURCE, and protect their funds! 📉 🛡 The Bulletin has shown that the total value AND volume of scam claims made in March and April 2024 FELL by -15.7 per cent and -7.1 per cent respectively, in comparison to January and February. 👩💻 Kirsty Adams, Fraud & Scams Expert at Barclays says: “Invoice scams are becoming increasingly sophisticated. Scammers target suppliers, creating fake emails requesting invoice payments that can look seriously legitimate. “People might imagine that invoice scammers solely target those working in finance, but it’s important for everyone to stay vigilant – particularly as we approach the summer, when consumers might be settling big invoices for events such as weddings and parties. It can be devastating to have a life event ruined by a heartless scam.” “It is always worth double checking invoice and payment details against a previous invoice and if in any doubt, verify the details or amount with a known contact from the business over the phone.” Find out more on the link below! #barclays #fraudprevention #invoicescams #fraud #fincrime #financialcrime #financialservices #payments #fintech #mandatescam

Authorised Push Payment (APP) scams have become a prevalent issue in the financial sector, where fraudsters deceive individuals into transferring money to accounts under their control. These scams not only lead to significant financial losses but also cause severe emotional distress to victims. The growing sophistication of scammers and the increasing digitalisation of financial transactions have exacerbated the problem, making it a critical area of focus for regulators and financial institutions alike. Read TPA Editor Benjamin David's thoughts on new findings which serve as a crucial benchmark for assessing the industry’s progress in combating fraud. https://lnkd.in/eW-Hffmn

...𝑡ℎ𝑒𝑟𝑒’𝑠 𝑎 𝑠𝑝𝑒𝑐𝑖𝑎𝑙 𝑝𝑙𝑎𝑐𝑒 𝑖𝑛 ℎ𝑒𝑙𝑙 𝑓𝑜𝑟 𝑡ℎ𝑒𝑠𝑒 𝑠𝑐𝑎𝑚𝑚𝑒𝑟𝑠. 𝑂𝑢𝑟 𝑎𝑢𝑡ℎ𝑜𝑟𝑖𝑡𝑖𝑒𝑠 𝑚𝑢𝑠𝑡 𝑤𝑜𝑟𝑘 𝑑𝑜𝑢𝑏𝑙𝑒 𝑡𝑖𝑚𝑒 𝑡𝑜 𝑝𝑟𝑜𝑠𝑒𝑐𝑢𝑡𝑒 𝑡ℎ𝑒𝑠𝑒 𝑢𝑛𝑠𝑐𝑟𝑢𝑝𝑢𝑙𝑜𝑢𝑠 𝑖𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙𝑠 𝑠𝑜 𝑡ℎ𝑒𝑦 𝑎𝑙𝑟𝑒𝑎𝑑𝑦 𝑔𝑒𝑡 𝑎 𝑡𝑎𝑠𝑡𝑒 𝑜𝑓 ℎ𝑒𝑙𝑙 𝑓𝑜𝑟 𝑡ℎ𝑒𝑖𝑟 𝑐𝑟𝑖𝑚𝑒𝑠 𝑏𝑒𝑓𝑜𝑟𝑒 𝑡ℎ𝑒𝑦 𝑒𝑣𝑒𝑛 𝑓𝑎𝑐𝑒 𝑡ℎ𝑒 𝑑𝑒𝑣𝑖𝑙 ℎ𝑖𝑚𝑠𝑒𝑙𝑓. Do I need to say any more? That conclusion to this Philstar.com opinion piece about fraud is pretty definitive. I have a conflicting philosophy about the nature of fraud and the people involved, but I still got value out of the author's personal accounting of their firsthand experience with fraud. I especially appreciated the asides, such as "I know I shouldn’t have picked up a cold call". These give not only personal insight, but also a view into how and why such common and well-known fraud schemes continue to persist in high volumes. If it ain't broke... Busting credit card fraud rings (https://lnkd.in/gkHT_5PX) #fraud #fraudmanagement #fraudarticle #opinion #payments #paymentfraud #crime #scamawareness

Wise words from Wietske Larrandart.   Opening an account quickly may seem convenient, but security should always come first. Nothing beats a real person when you're navigating a maze of questions and feeling vulnerable. Fraud knows no bounds, which is why your provider needs robust controls to protect you from ID and payment fraud.

A "fast way to get an account" is not necessarily a "safe way"....and nothing worse than a chatbot when all you need is a helpful person on the other side when you have a million questions, feel lost and vulnerable. No one is immune to fraud, and your provider should have robust controls in place to safeguard you as its customer and to stop ID and authorised push payment fraud on your account. Sometimes this does mean a few extra questions or steps when opening your account, but that extra information is used to protect you and layer security specific to you on your account, so these rubbish fraudsters don't get their dirty hands on your money. Please speak to your neighbours, friends and family about this. As Compliance professionals, we live and breathe it as we combat it, but for those individuals, all they might see is "its so easy and fast to get an account, I didn't have to really tell them anything". BOOM. #fraud #aml #kyc #Compliance #fraudprevention #mlro #fight fraud Aston Currency Management Aston CM (Guernsey) Limited https://lnkd.in/e2iadCn7

The upcoming authorised push payment (APP) fraud payout amount has been reduced to £85,000 ahead of its imminent implementation. There is still some bashing of heads between the regulator and the payment firms, so best to keep an eye on this one. Headline: better protection for consumers in the event of fraud. Possible outcome: enable fraudsters to play the system enforcing fraud payouts by payment firms, pushing those payment firms out of business…

Stay secure and avoid scams ⚠️ UK Finance revealed that fraudsters stole £42.6M from businesses in the first half of 2023 through authorised push payment (APP) fraud.  Criminals target companies of all sizes, as businesses tend to hold more money in accounts than an average customer would. So, we’ve created an informative guide to help you recognise the signs of common scams and explain how we’re helping keep your funds safe. Read our guide and learn how to protect yourself and your business in the fight against fraud: https://3s.money/app-scams #TakeFive #ChallengeStopProtect #FraudAwareness #ScamPrevention

Interesting study from FinCEN highlights one of the major risks in the continued use of physical checks for B2B and B2C disbursements. It is amazing that in today's digital world, the use of checks is still so prevalent. Not only do companies lose money (actual funds lost) with fraud, the use of checks is also a drag on time and overall efficiencies. It also diminishes the customer and/or supplier experience. As Murrow Consulting Group notes, Verituity helps enterprises quickly and efficiently transform their B2B and B2C disbursements processes by providing a solution with holistic trust and verification at the core. Not only does this deliver massive cost savings, but it safeguards enterprises from payments fraud and errors and exceptions that are often downstream impacts of legacy sytems.