Training and awareness: important for businesses and consumers
It’s not just businesses that need to be aware of the threats posed by fraudsters. Customer education is equally critical for fintechs and financial institutions.
Richard elaborates: “Historically, customer education has been a neglected element of traditional fraud control frameworks.
“The emergence of new fraud typologies (including more sophisticated APP fraud) has led to a change in mindset in recent years. Financial services institutions are now increasingly aware that educational initiatives, particularly when tailored to the client base concerned, are a critical part of their preventative fraud controls.”
One area where consumers may be unaware of the scope of fraud is its occurrence beyond the KYC phase, which is becoming increasingly common.
For Richard, while “KYC remains a critical part of any anti-fraud approach, it is only one part of the lifecycle.”
“Businesses need to ensure they have robust authentication controls, appropriate preventive and detective transactional controls, the ability to undertake appropriate investigations and a suitable recovery function,” he continues.
“If none of these elements are working effectively, a company will fail to live up to the de facto market standard, making it and its customers an easy target.”
