Banks should not assume fraud victims are at fault, UK watchdog says

Banks should not assume that customers have been negligent when they fall for scams peddled by increasingly sophisticated fraudsters, Britain’s financial ombudsman reportedly said on Wednesday.

Commenting on this, Robert Capps, vice president at NuData Security, a Mastercard company, said “The unprecedented sophistication that organised bad actors now use to commit fraud is certainly daunting, and their exploits are conducted at levels that the average customer cannot defend against. Account holders look to their institutions and merchants as partners in secure shopping.

Protecting themselves and customer against fraud is exactly why so many banks, merchants, and others in the eCommerce and payments ecosystem are implementing solutions to help detect and thwart the use of stolen consumer credentials and payment data in real time, before theft can occur. These advanced user verification solutions include passive biometrics and behavioural analytics that immediately differentiate real customers from imposters based on the legitimate customer’s inherent behaviours. Bad actors can’t mimic the rightful account holder’s online patterns, devaluing the victim’s stolen credentials.

These security measures are central to the customer relationship, and help protect the merchant’s and bank’s brand reputation, as well as their bottom line.

In those global regions where the transactional liability or burden of proof does rest with customers, end users tolerate the multiple verification and authentication steps along the way, but that friction can deter and suppress the volumes of online transactions.”