The Rise of Online Scams, Why New Security Tools Are NeededOmega FinCrime's Ian Mitchell on How Banks, Vendors Can Help Protect Consumers
With fraudsters evolving their tactics and tricking a growing number of people with authorized payment scams, it's time for banks and security solution providers to explore new ways to protect consumers who are left holding the bag, says Ian Mitchell, managing partner at Omega FinCrime.
Scams fall under the category of authorized fraud, in which victims are duped into performing a fraudulent transaction. "This is a very important nuance since it changes the way our fraud defenses need to act," says Mitchell, a financial crimes advisory board member at the American Bankers Association who predicted a rise in scams nearly a year ago.
Part of the problem, he says, is that fraudsters have developed a diverse range of tactics. "What is making it difficult for fraud fighters around the world is that it is not just one scenario where they can put a finger," Mitchell says. "You can have scams related to your pets and puppies all the way to what you do with your vehicle."
To protect consumers, organizations needs to shift their thinking from how to automate customer interactions to ways to educate and warn customers of potential scams, he advises.
In this video interview with Information Security Media Group, Mitchell discusses:
- The many types of scams and why the industry needs a proper definition of them;
- Why scams typically increase during an economic downturn;
- Why traditional identity controls do not work and ways banks and cybersecurity vendors can do a better job of protecting customers.
Mitchell, who leads fraud prevention at Omega FinCrime, also founded The Knoble, a nonprofit global network of experts with a passion for fighting human crime. He previously led PwC’s Financial Crimes Unit and fraud management practice and serves as a financial crimes advisory board member at the American Bankers Association.