It may seem strange for you to put a spotlight on the notion that digital banking can be a prime target for scammers and fraudsters, but you should. Because while talking about fraud and scams with your accountholders may seem awkward or alarming (after all, banks and credit unions are the most secure places for people to manage their money), highlighting the reality of fraud puts your brand in a position of advocacy. Here, you’ll find three tips for helping you create a fraud education strategy that fits your brand.
Fraud prevention doesn’t have to be scary for you or your accountholders. It’s not your purpose to frighten people away from your digital banking solutions that can offer real help.
It’s important to find ways to associate your brand with trust and service, and fraud prevention education is part of that goal.
Do a quick search for images associated with fraud or scams and you’ll get a screen full of either overly technical or seriously ominous images. Be proactive about avoiding these scary stereotypes and keep your messages human and appropriately associated with your brand.
In addition to giving specific guidelines about digital tools, don’t forget to include general banking safety practices by offering reminders about never giving personal banking information, passwords, or codes to anyone. Assure account holders that you will never call, email, or text asking for that information and let them know to contact you immediately if they suspect fraud on their account.
Keep Current with What’s Happening
Providing the best fraud education for your customers and members depends on being aware of the latest scenarios.
For example, the COVID-19 pandemic has altered banking routines, including the ways we pay. Consumers are increasingly looking for safe contactless payment options, and as a result, the use of peer-to-peer (P2P) mobile payment apps is growing.
If you lead a marketing team or are responsible for your bank’s or credit union’s brand messaging, keep in mind that your communications need to address the fact that while payment apps all may appear to do the same thing, each of these services operates somewhat differently, and experiences with them may vary.
Let them know your commitment to promoting safe and innovative payments.
A recent P2P payment scam scenario involves account takeovers during the app enrollment process, where someone impersonates an employee from your organization. They offer to help someone enroll, and in the process are able to get the account login information and send money to their own account.
Fraud is when someone gains unauthorized access to your money. A scam is when you authorize a payment, but don’t receive what you expect. It can be harder to get your money back from a scam since you authorized the payment, so it’s a good idea to educate your customers and members about the difference.
Other financial crimes predictions for 2021 include ID fraud, PPP schemes, and scams of all categories, which will lead to authentication becoming a bigger part of the fraud fight.
Good fraud prevention education makes a difference. For some digital banking solutions, like bill pay, fraud attempts are actually down as much as 15%.
It’s important to celebrate prevention successes. But fraudsters are always evolving, so you need to remain cautious and be willing to act fast by adapting messaging and having a responsive way to inform your accountholders to help protect their accounts.
One example of a good fraud prevention resource is the American Bankers Association’s Banks Never Ask That nationwide campaign, which hosts a series of online, interactive, social media resources for your organization to use with end-users. Often, well-known brands also provide safety education resources and campaigns for banks and credit unions that offer their specific solution.
Ultimately, opening up about the reality of fraud can help you strengthen the connection with your customers and members. Offering secure digital solutions, along with fraud prevention best practices, strikes the right balance.
Learn more about fraud prevention education resources from Jack Henry.
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