STAYING VIGILANT: HOW TO PROTECT YOUR CUSTOMERS AND YOUR INSTITUTION FROM FRAUD IN UNCERTAIN TIMES By OnCourse Learning Fraudsters are known to prey on victims when they are facing uncertainty, distress and anxiety. The current times are no different, as several recent bank failures and financial instability have left consumers feeling vulnerable about their personal and business finances. This heightened concern has created an environment where they may be more susceptible to being taken advantage of or making hasty decisions. Fraudsters are using typical phishing, social engineering and malware tactics but with a fresh spin to exploit this uncertainty. Three Most Common Types of Financial Fraud 1. Phishing scams involve fraudulent emails or messages that appear to be from legitimate financial institutions. These messages often contain links to fake websites that resemble actual sites but are designed to steal login credentials and other sensitive information. 2. Social engineering involves manipulating people into providing personal or financial information using techniques such as pretexting, baiting and quid pro quo. These methods involve creating false identities or offering something of value in exchange for personal information. 3. Malware and malicious software are used to gain access to personal information. These can be downloaded onto a computer through email attachments or links in messages and, once installed, can be used to steal passwords and account numbers. With advances in artificial intelligence and the use of bots, it’s going to be harder to detect fraud. Institutions and customers will need to work together to keep each other and their assets protected. Ways to Prevent Financial Fraud There are several steps financial institutions can implement to combat these threats and help protect their customers, as well as their organization. These start at the institution level. Employee Training: Banks and credit staff are at the front of the fight. They must be fully trained in risk management. Staying in compliance will protect the clients and the institution. 20
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