You can use the search function to find a range of UK Finance material, from consultation responses to thought leadership to blogs, or to find content on a range of topics from Capital Markets & Wholesale to Payments & Innovation.
Scams are the alternative pandemic
In order to be successful, Authorised Push Payment (APP) scams must constantly morph to reflect current consumer and industry motivations. Consequently, there is one scam that is gaining a disproportionately large amount of momentum - the crypto scam.
The hook of crypto
Public interest in crypto currencies has risen rapidly in recent times. This has been underpinned by a gain in market share, which has increased both its credibility and its media coverage.
Its popularity is fuelled by the potential it can give to make fast and sizeable gains from crypto volatility. Despite hefty falls, it has also had moments of exponential growth, attracting those investors keen to accept the risks for potentially huge rewards.
It is this desire to make money quickly, combined with the fear of missing out, that fraudsters use to their advantage.
How do the scams work?
Crypto scam intricacies vary, from fraudsters posing as Elon Musk to the promise of free sign-up bonuses. Detail aside, the macro level convincer will usually fall into one of two categories: the promise of something for free, or the fear of missing out on an opportunity.
The diagram shows just one example of how a crypto scam might flow:
Crypto scams create three pillars of hurt
How do you stop crypto scams?
If you would like to learn more about data driven & AI focused fraud prevention, please visit https://feedzai.com/industries/retail-banks.
Daniel Holmes, Fraud Prevention SME, Feedzai