10/24/2024

Why ‘Good Enough’ Isn’t Winning Banks’ Fight Against Fraud

PYMNTS

How do you deal with an entity that is so malicious it will use a natural disaster to commit cybercrimes?

It’s happening in the wake of the two hurricanes that hit the southeastern United States as well as severe storms in other parts of the world. As stated in an Oct. 10 post on banking and payment authentication company Entersekt’s blog, these scammers pose as fake charity organizations or create new identities as victims applying for government aid.

It’s the latest example of a battle in the war against the criminals out to steal data, hack into accounts and impersonate legitimate entities and individuals. To counter it, a new mindset and tech-driven buildup of defenses is in order. It’s a world where “good enough” fraud defense and identity verification won’t be enough.

“It can be difficult to quantify what you are up against, but there are best practices out there,” Entersekt Solutions Director Steve Bledsoe told PYMNTS in an interview.

The “good enough” approach has been accepting of the status quo of fraud prevention — and clinging to the hope that current and past solutions and tools will be enough to continue to combat fraud effectively into the future, he said.

It’s not working out that way — and it’s not going to work, either.

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