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.
Fraudsters are employing tactics like phishing scams, malware, and account takeovers to steal your information. Staying vigilant and educating yourself on the latest fraud trends is crucial for safeguarding your information against financial fraud.
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. Fraudsters often create a sense of urgency to avoid critical thinking.
Common fraud schemes to watch out for
To stay ahead of these threats, it's crucial to recognize common fraud schemes. Understanding the giveaways in different forms of fraud can help you identify and avoid potential scammers.
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. Be careful of online relationships that progress quickly or involve requests for money.
E-Commerce Fraud: This involves using deceptive practices such as creating online storefronts to gain access to your sensitive banking information at checkout.
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.
Cryptocurrency Scams: Cryptocurrency allows fraudsters to use investment schemes that target digital wallets to steal money from users. The growing popularity of cryptocurrency has opened new channels for fraud.
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. This will help you identify and avoid potential scams.
Be Vigilant: Be cautious when sharing personal information online or over the phone. Always do your best to verify the legitimacy of the person or organization on the other end.
Use Strong Passwords: Create complex passwords and enable two-factor authentication. Wherever possible, use an authenticator app for added security.
Monitor Your Accounts: Regularly review your bank statements for any unusual activity. Set up notifications with your banking app to alert you of suspicious logins or activity.
Report Suspicious Activity: If you suspect fraud, report it to your bank immediately. It’s much better to report fraud sooner rather than later.
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.
Secure Domain: Live Oak recently changed our website address to liveoak.bank. The .bank domain is widely recognized as a valid domain and a symbol of trust and reliability in the financial industry. This can deter cybercriminals from targeting websites with this domain.
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.
