Authorized payment scams are on the rise, and banking regulators are putting pressure on financial institutions to do more to protect customers. The biggest challenge is that the customers are driving the process, says Bradley Haacke, vice president and financial crimes director at Fifth Third Bank.
“As bankers, we want people to have control of their money. When they don’t identify whether they are sending something fraudulent, the banks are limited in some capacities,” Haacke says.
“In addition to that, oftentimes the scammers are coaching and manipulating the victims or participants and ask them to say whatever the banks want to hear.”
In this audio interview with Information Security Media Group, Haacke also discusses:
- Whether banks can ever have full control over authorized fraud;
- Technology tools banks can leverage to controls scams;
- Why customer education is an important defense.
Haacke has worked in the banking industry since 2010 and specializes in fraud prevention.