07/09/2024
ATLANTA — LexisNexis® Risk Solutions published a study evaluating how financial institutions (FIs) detect and mitigate authorized transfer scams, where fraudsters manipulate or deceive account holders to transfer funds to them.
The study, Defend Against Authorized Transfer Scams, finds that fraud risk and mitigation strategy leaders at US financial services institutions understand the importance of both detecting and mitigating scams effectively. However, they exhibit lower confidence in their organizations' capabilities and solutions for these efforts. While 81% of FIs prioritize mitigating more scams to prevent customer financial loss, only 50% feel confident in their ability to do so.
Fraudsters are highly skilled at coaching targets to complete authorized transfer scams. They manipulate or deceive targets into transferring funds to them through various means, such as the false sale of goods, services or investments. They also use fraudulent payment instructions and impersonation schemes, including posing as romantic interests, fake businesses, charities, family or friends.
"Scams, fraud and financial vulnerability are on the increase. Meanwhile, consumers increasingly expect safer and more secure interactions and transactions," said Soudamini Modak, director of fraud and identity at LexisNexis Risk Solutions. "FIs must analyze digital and behavioral signals to implement better strategies for mitigating scams across multiple channels. It’s important FIs detect scams and other fraudulent behavior without frustrating consumers by slowing legitimate transactions and risking customers abandoning their transactions."
Key Findings from the Study:
Download the Defend Against Authorized Transfer Scams study.
Methodology
LexisNexis Risk Solutions commissioned Forrester Consulting to conduct an online survey of 413 financial services directors and decision-makers at organizations in the US to evaluate fraud risk and mitigation strategies. Survey participants included decision-makers in IT, operations, fraud prevention, customer service, digital banking and product management. Questions provided to the participants focused on the current state and benefits of fraud mitigation strategies, as well as the current state and challenges of fraud risk. The study began and was completed in September 2023.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data, sophisticated analytics platforms and technology solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit LexisNexis Risk Solutions and RELX.
Media Contacts
Ade O'Connor
Sr Manager, Int. Media Relations
ade.o'connor@lexisnexisrisk.com
+44.79.8091.8264