Fraud Management & Cybercrime , Fraud Risk Management , Video

The Rise of Online Scams, Why New Security Tools Are Needed

Omega FinCrime's Ian Mitchell on How Banks, Vendors Can Help Protect Consumers
Ian Mitchell, managing partner, Omega FinCrime

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.

See Also: Strengthening Microsoft 365 with Human-centric Security

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.

About the Author

Suparna Goswami

Suparna Goswami

Associate Editor, ISMG

Goswami has more than 10 years of experience in the field of journalism. She has covered a variety of beats including global macro economy, fintech, startups and other business trends. Before joining ISMG, she contributed for Forbes Asia, where she wrote about the Indian startup ecosystem. She has also worked with UK-based International Finance Magazine and leading Indian newspapers, such as DNA and Times of India.

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