Financial institutions and their customers face a tough battle in the fight against fraud.
“The consumer and the bank have to be right 100% of the time,” says Erik Beguin, CEO and founder of $504 million Austin Capital Bank. “The fraudster has to be right just once, and the money’s gone.”
It’s a problem Beguin and his team worked five years to address. In July, the subsidiary of Austin, Texas-based Greenback Fincorp launched its solution: Fort Knox, a savings account designed to keep customers safe from schemes like phishing attempts, where a criminal gains access to a customer’s online banking credentials, or romance scams designed to trick someone into sending their life savings to a fraudster. Consumers lost $12.5 billion to fraud in 2024, a 25% increase from the prior year, according to the Federal Trade Commission. Of that, consumers reported sending $2.95 billion to imposters, with bank transfers and cryptocurrency payments resulting in the highest losses.
…continued at: https://finxtech.com/to-counter-fraud-a-bank-offers-the-opposite-of-easy-access/
