As technology advances, so too do the threats to our financial security. More than 29% of bank customers have experienced some instance of fraudulent activity in the past 12 months, signaling that banking fraud is on the rise. To protect your hard-earned money, it's important to understand the banking fraud landscape and implement effective protection measures.
The evolving threat of fraud
Fraud losses in the US have soared, surpassing $10 billion last year. Fraudsters continue to adapt and succeed. This alarming trend can be attributed to several factors.
Data Breaches and Identity Theft: The increasing frequency of data breaches has led to a surge in identity theft. Fraudsters can gain access to sensitive personal information from data leaks.
Advancements in AI: Generative AI has become a powerful tool, enabling bad actors to create sophisticated online identities and convincing social engineering campaigns.
Psychological Manipulation: Social engineering techniques that exploit human emotions continue to be highly effective in deceiving people.
Common fraud schemes to watch out for
To stay ahead of these threats, it's crucial to recognize common fraud schemes.
Pretexting: Fraudsters may create elaborate stories to gain your trust and trick you into sharing sensitive information. They may pose as trusted entities like your bank, a well-known tech company, or even a government agency.
Online Impersonation: Scammers create fake online profiles to build relationships with victims over time, eventually exploiting their trust. This can include romance, investment and job-related scams.
Tech Support Scams: Fraudsters may claim to be tech support experts and offer assistance with your computer or phone. Their real intention is to gain remote access to your device to install malware or steal your information.
Financial Scams: These scams target banks and their customers. Fraudsters may create fake websites or advertisements to lure victims into sharing sensitive information, login credentials or transferring funds.
A shared responsibility
Protecting your financial well-being is a shared responsibility between you and your bank. Here's what you and your financial institution can do to combat fraud.
What You Can Do:
Stay Informed: Stay updated on the latest fraud trends and techniques.
Be Vigilant: Be cautious when sharing personal information online or over the phone.
Use Strong Passwords: Create complex passwords and enable two-factor authentication.
Monitor Your Accounts: Regularly review your bank statements for any unusual activity.
Report Suspicious Activity: If you suspect fraud, report it to your bank immediately.
What Live Oak Bank is doing to prevent fraud
Advanced Technology: Employing state-of-the-art technology to detect and prevent fraud.
Employee Training: Continuously training our Live Oak Bank employees to identify and respond to suspicious activity.
Account Monitoring: Monitoring accounts for signs of fraud and authenticating anyone who interacts with the Live Oak banking platform.
Customer Education: Providing resources and tips to help customers protect themselves.
By working together with your bank, you can build a stronger defense against financial fraud. Your bank has a responsibility to protect your accounts, but you also play a key role. By taking proactive steps like staying informed about the latest scams, using strong passwords, being cautious of suspicious callers, emails or text messages and enabling two-factor authentication, you can significantly reduce your risk.
