As in recent years the peak in consumer spending during the festive period has seen a surge in financial fraud. With everyday consumers reporting more fraud than ever before, the demand for banks and service providers to better safeguard customer data and fortify their fraud and security systems reaches new heights.
Cybersecurity and protection from online fraudsters have become a serious driver for consumer choices as they experience unprecedented levels of attempted scams and news reports of financial loss and identity theft increasingly hit the headlines.
In 2021 UK Finance reported that consumers had lost £1.3bn to online fraud, and no organisation or individual is immune, no matter how technically or financially savvy they may be. In 2021 Ofcom reported that 8 in 10 of us had received a suspicious text message or phone call. High profile cases such as former Blue Peter host Helen Skelton who lost £70,000 in savings to a bank impersonation fraud, illustrate the scale of the problem.
Mobile phones have become the gatekeepers to our digital identities and a point of access to all our accounts, email, bank, social media, crypto-currency and more – making them both the target and the tool with which cybercriminals instigate much of their fraudulent behaviour.
Frauds that are orchestrated around the takeover of an online account or authorised push payments via smart phones have become a major problem for many banks and their customers. JT’s experience as a mobile network operator has enabled our specialist Fraud Protection Services division to develop and deploy highly effective fraud protection and cyber-security tools. Today, JT solutions are actively helping banks throughout the UK, Europe and the Channel Islands to identify fraudulent behaviour instantaneously, taking proactive measures to block suspicious behaviour before it results in financial losses. JT’s bespoke product solutions add valuable layers of extra security for banks by leveraging real-time telecommunications data to authenticate consumers digital identity and seamlessly authorise transactions.
As our digital footprints become increasingly bigger, well prepared, articulate and financially knowledgeable fraudsters are finding new ways to target consumers. Pension and investment scams and crypto-currency fraud have all seen increases in recent years. The latest Saltus Wealth Index also illustrates how fraudsters are actively targeting high net worth individuals, reporting in 2022 that the likelihood of being scammed rises with net worth, 73% of those worth over £3m reported having been victims of fraud compared to 40% of those with less than £250k.
As cases of financial fraud and the illicit use of individual’s account credentials continue to hit the headlines, consumers are taking action to protect their data by leaving service providers that don’t adequately safeguard their personal data. Over 80% of consumers say they’d stop engaging with a business if they discovered their personal information had been compromised. Security control tools are now among the top features that users say they expect in mobile banking apps.
The safeguarding of customers' data has become a critical part of the growth strategy for the banking and financial sector.
For more information on how you can better protect your customers from the threat of financial fraud contact JT today at international.jtglobal.com
You can learn more about JT’s Fraud Protection Service by downloading the JT Fraud Protection Services Overview today.