Fraud Victim Support How Financial Institutions Can Respond and Restore Trust By TERRI LUTTRELL, CAMS‑Audit, CFCS Compliance and Engagement Director, Abrigo As fraud schemes evolve in complexity and scope, financial institutions are called upon to do more than just detect and prevent illicit activity. Banks and credit unions often also serve as first responders when individuals or businesses fall victim to financial fraud. Institutions that respond with urgency and empathy to support victims of fraud can rebuild trust, restore confidence and reinforce long-term relationships with clients. But fraud victim support is about more than recouping financial loss. Understanding the common fraud schemes clients may encounter and taking an intentional approach to assist in the aftermath demonstrates an institution’s values, dedication to client care and role as a trusted advisor within the community. The Growing Cost of Fraud Reported fraud losses exceeded $12.5 billion in 2024, according to the Federal Trade Commission (FTC). The FBI documented an even higher total loss of over $16.6 billion across 859,000 complaints. These figures speak not only to the scale of financial harm but to the emotional toll these crimes leave behind. The volume and impact of fraud are increasing across all channels. In 2024, investment scams topped the list in financial damage, with $5.7 billion in reported losses. Imposter scams followed closely at nearly $3 billion. Criminals prey on trusting and vulnerable people, and they continue to leverage digital platforms to initiate contact via email, phone or text, and move funds through cryptocurrency, bank transfers or wire services. According to the FBI, phishing scams were the most frequently reported. However, business email compromise and investment fraud caused the most significant monetary damage. These trends highlight the urgent need for comprehensive fraud victim support programs that go beyond the basics of account recovery. Understanding the Scope of Fraud Financial institutions must first understand the various forms of fraud affecting their clients to deliver meaningful assistance. Some of the most prevalent methods include: • Cybercrime Attacks: Cybercrime attacks occur approximately every 11 seconds, costing organizations an average of $13 million per incident. Small businesses are especially vulnerable due to limited cybersecurity infrastructure. 16 NEBRASKA INDEPENDENT BANKER
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