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how banks can help their customers prevent fraud

New Technologies, Old Principles

New technologies often experience slow adoption rates. Initial problems get solved, the technologies have proven themselves useful and easy to use, but the users are simply not there. A good example is the adoption rates of mobile payments. They are simple to use and make payments a "wherever, whenever you want" process, but customers did not jump at the opportunity and it took some time for mobile payments to become widespread.

Fraud Rising

A large concern to both customers and service providers today is fraud. A survey by Kroll revealed that:

  • 84% of surveyed companies reported a 2% increase in fraud in 2017 compared to 2016, continuing the trend of yearly rise since 2012.
  • Currently, the most popular fraud schemes are: session stealing, man-in-the-middle, key-loggers, and phishing.

The banks are very aware of the risks these schemes pose and are implementing a number of security measures to prevent both machine-resident and web-based attacks, as well as session-based transaction attacks.

IMAGINATION IS INNOVATION AND ADOPTION

While banks work hard on their fraud detection and prevention processes and features, the issue of customers being reluctant to adopt them still remains. 

Customers not being able to clearly envision what exactly a new technology or feature can do for them seems to always play a big role here.

The key is to educate the customers by pointing out the various benefits, using clear language and specific examples of the speed and usefulness of both a feature and the fraud detection and prevention systems that come into use with it.

This way, customers are more likely to consider and then adopt, as well as recommend to others. Banks can increase security as well as customer satisfaction by promoting this common-sense advice among their customers.