- Feedzai’s new report reveals a lack of awareness of scams is putting many consumers at severe risk
- Romance scams top the list of most common fraud type with one in 10 who have fallen victim losing more than $8,400 to scammers
- Fraudsters are adapting and increasingly taking advantage of unsuspecting consumers, luring them into becoming money mules with 42% approached on social media
- Consumers believe it’s the responsibility of their bank to reimburse them should they be targeted, with 77% leaving their bank should they not be refunded
- Banks must adopt emerging technologies if they’re to tackle fraudsters and reassure their customers, with 53% feeling safer knowing their bank is using AI to protect them
Feedzai, the world’s first RiskOps platform for financial risk management, has released its latest report – The Human Impact of Fraud and Financial Crime on Customer Trust in Banks. The report, based on research of 4,000 consumers in the UK and US, reveals how fraudsters are taking advantage of the widening fraud knowledge gap, outlining the urgent need for banks to educate and protect their customers with technology.
The report reveals that while over half (56%) of respondents have been a victim of a financial scam, many still lack the knowledge to detect and distinguish between the various types of financial crime.
Consequently, many consumers believe the responsibility for reimbursement lies with their bank, with over half (53%) believing they should be reimbursed if they fall victim to a scam or third-party fraud. If they weren’t refunded, three-quarters (77%) of respondents across the UK and US indicated they would leave their bank.
Romance tops the list but fraudsters are adapting
Romance scams top the list as the most reported type of scam, with a third (36%) of respondents having either been personally scammed or knowing someone who has been a victim. Arguably one of the cruelest forms of consumer-facing fraud, fraudsters have…