-
Global survey shows that real-time-payments (RTP) usage and scams are growing both in frequency and value of loss worldwide
-
A new global FICO survey finds that more consumers reported that their family and friends have been victims of real-time payment scams in 2024 (56%) versus 2023 (51%).
-
50% of consumers call for their banks to “have better fraud detection systems” as the top action needed to protect them from scams.
-
65% of consumers across the globe say that banks should be required to reimburse scams victims for their losses.
Global analytics software leader, FICO, released new research regarding consumers’ increased use of real-time-payments (RTP), leading to higher reported scams threats and an increase in losses. 2024 marks the second annual Global Scams Impact Survey, showcasing findings and trends from tens of thousands of consumers across the globe, including 1,000 from the United States. The responses, trends, and additional analysis of these datasets are provided in the report.
Overall, consumers around the globe report that with the increase of scams, they have higher expectations for fraud prevention at banks. Banks need to remain competitive in fighting fraud and providing consumers with excellent customer experiences.
“Consumers are asking for banks to do a better job at identifying scams,” said Debbie Cobb, vice president of fraud product management at FICO. “Banks need to prioritize guarding their customers from scams with fraud detection technology that can keep up with the ever-changing landscape, as well as offering educational resources on how consumers can best protect themselves. The survey found that although most consumers globally (59%) say their banks provide enough education on scams, 36% of consumers in the USA and Canada believe their banks do not provide enough.”
Consumers around the globe report that with the increase of scams, they have higher expectations for fraud prevention at banks. Banks need to remain competitive in fighting fraud and providing consumers with excellent customer experiences.
Read More: Keeping up with AI in Accounting: 5 Crucial Skills to Learn
Consumers have higher expectations for fraud prevention at banks
The survey shows that more consumers globally in 2024 reported that their family and friends have been victims of RTP scams than in 2023. 56% of consumers (globally) now say their friends or family members have been scammed, versus 51% in 2023 – an alarming 5% increase. Across the world, North American countries reported 47% of family and friends being scammed, Latin America countries reported significantly higher at 69%, European countries reported at 48%, and Asia-Pacific countries reported 56%.
The survey finds that globally, 73% of consumers would feel positive about their banks if they intervened to stop RTP transactions that had been detected and identified as scams, leading to increased customer retention and loyalty. Half of consumers globally (50%) ranked “have better fraud detection systems” as the top action their banks could take to protect them from scams.
Consumers want banks to reimburse scams losses
Consumers will take a series of actions that are costly to banks when they experience scams. Customer churn is one of the most significant risks, as 13% of consumers globally say they could change banks if unhappy with how their bank manages the experience around scams.
Reimbursement liability is another significant consideration, as 65% of consumers globally say that banks should be required to reimburse scams victims for their losses always (34%) or most of the time (31%). In contrast, 47% of Asia-Pacific consumers report lower percentages asking for banks to reimburse for scam losses always (24%) or most of the time (23%).
For banks, transactional monitoring models with built-in scam and fraud scores can help prevent fraud impacts. As consumers continue to embrace RTP, it is essential for banks to give consumers the best experience with the least potential impact from fraud.
Read More: Global Fintech Series Interview with Frank Pagano, Executive Sales Director at VizyPay
[To share your insights with us, please write to psen@itechseries.com ]
