Training & Awareness: Important for both business and consumers
It is not just businesses that need to be aware of the threats fraudsters pose, customer education is just as paramount for fintechs and FIs to consider and onboard.
Richard expands: “Historically, customer education was a neglected element of traditional fraud control frameworks.
“The emergence of new fraud typologies (particularly more sophisticated APP fraud) has led to a change in mindset in recent years – FS institutions are now increasingly aware that educational initiatives, especially when tailored to the customer base in question, form a critical component of their preventative fraud controls.”
One area where consumers may not be aware of fraud’s reach is its occurrence past the KYC stage, which is becoming all the more frequent.
For Richard, while “KYC remains a critical component of any counter fraud approach, it’s only one component of the lifecycle”.
“Firms must ensure they have robust authentication controls, appropriate preventative and detective transactional controls, the ability to undertake appropriate investigations and a suitable recoveries function,” he continues.
“Without each of these components operating effectively, a firm will fall behind the de facto market standard – making both them and their customers an easy target.”