Fintech
A&M: AI in Fintech – Balancing Innovation and Cybersecurity Threats
Education and awareness: important for both companies and consumers
It’s not just businesses that need to be aware of the threats posed by scammers: customer education is also a key aspect that fintech and financial companies need to consider and engage with.
Richard explains: “Historically, customer education has been an overlooked element of traditional fraud control systems.
“The emergence of new types of fraud (particularly more sophisticated APP fraud) has led to a shift in mindset in recent years: FS institutions are now increasingly aware that educational initiatives, especially when tailored to the customer base in question, are a key component of their fraud prevention controls.”
One area where consumers may not be aware of the extent of fraud is its occurrence beyond the KYC stage, which is becoming increasingly common.
For Richard, while “KYC remains a critical component of any anti-fraud approach, it is only one component of the lifecycle.”
“Companies must ensure they have robust authentication controls, adequate preventative and detective controls on transactions, the ability to undertake appropriate investigations, and a suitable recovery function,” he continues.
“If each of these components does not function effectively, a company will fail to meet the de facto market standard, becoming an easy target for both itself and its customers.”