Money 20/20 is an energetic annual conference in Las Vegas that showcases cutting-edge technology, products, and best practices within the financial services sector. An editor had the chance to participate in this four-day event alongside a senior editor, Marc Wojno. We engaged in numerous enlightening sessions—generative artificial intelligence (AI) was a prominent topic of discussion—and enjoyed networking with influential figures from the banking and fintech fields.
The first day featured multiple presentations focused on how banks and fintech companies are harnessing AI. Speakers highlighted the immense potential of AI, including a striking statistic: JP Morgan Chase anticipates that AI will generate $2 billion in value for them by 2024. Many discussions revolved around using AI to combat cyber threats and prevent identity theft, among other crimes. As a banking journalist, I was particularly keen on understanding what measures banks are currently implementing to protect customers from financial fraud—whether through advanced AI technologies or more traditional human-centred approaches.
To gather insights, an editor conversed with various participants at Money 20/20, bank representatives, and even a personal acquaintance who recently suffered significant losses due to bank fraud. From what the editor learned at the conference, here are several strategies that banks and credit unions are employing to safeguard your finances.
Algorithms actively analyse your banking transactions in real-time. When you manage your finances on a computer or mobile device, your bank is likely performing fraud detection processes in the background. These evaluations occur at different stages, such as when you open a new bank account or seek a loan.
One prevalent method of financial fraud today involves synthetic identities. This tactic entails fraudsters merging authentic and fabricated information—like using a genuine social security number with a fictitious name—to create an identity that seems credible. According to GBG IDology, a company specialising in fraud prevention, 45 per cent of fintech firms reported an uptick in synthetic identity fraud over the past year. Joel Sequeira, director of product management at GBG IDology, notes that identity thieves often utilise artificial intelligence to craft these synthetic identities gradually before engaging in financial deceit. Initially, these counterfeit identities may establish credit and pay bills to appear legitimate.
To combat this type of crime, banks frequently use technology to identify fraudulent identities in real-time. According to Sequeira, various tools can pinpoint warning signs like a potentially compromised IP address, a dubious email address, or the use of a deactivated phone number. Numerous indicators are available that assist companies in making quick decisions about whether to proceed with onboarding or request further verification.
Fraudulent money transfers are often perpetrated when an employee unknowingly sends funds to a third party due to deceptive practices. This crime is categorised as occupational fraud and is considered one of the most significant and costly forms of financial crime worldwide, as highlighted in a 2024 report by the Association of Certified Fraud Examiners. The report estimates that the annual financial impact of occupational fraud amounts to trillions of dollars.
Scammers often target potential victims through LinkedIn, as noted by Sequeira from GBG IDology. They can easily guess someone’s email and send messages that appear legitimate, such as requesting immediate payment for an invoice. To mitigate these risks, banks and other organisations may implement additional verification steps during money transfers to thwart fraudulent activities. Although these extra measures can delay transactions—referred to as friction in industry jargon—companies generally accept this trade-off if it helps avert substantial financial losses. For instance, if you were transferring $50,000 from your bank account, you would likely not mind providing extra verification by visiting the bank branch or submitting documentation like your driver’s license through an online link.
Employees at bank branches also contribute to preventing fraud. While it’s common for banks to utilise advanced technologies to combat fraud, the human element remains crucial. To illustrate this point, the editor shared a story about a friend who recently fell victim to a government impersonation scam. By the end of it, her savings account was drained by tens of thousands of dollars. For confidentiality, we’ll refer to her as Darla.
Darla found herself in conversation with someone who claimed to represent the Federal Trade Commission (FTC) after she called a number from a pop-up message on her computer screen. Unfortunately, she became trapped in a typical online scam that falsely suggested her computer was compromised and required immediate assistance from Microsoft tech support. Once the con artist had her on the line, he informed her that her personal information had been compromised and was being used for identity theft on the dark web. He convinced her that handing over money for him to safeguard was essential until they could apprehend those responsible.
In the end, Darla complied with his demands: she first provided him with thousands of dollars worth of Apple gift cards and then withdrew most of her funds from the bank, placing them into a shoebox before giving it to a courier who arrived at her home. Looking back, Darla acknowledges that she should have recognised this as fraud; however, she had been manipulated into trusting him and was genuinely concerned about how identity theft might affect both herself and her son. I’m so angry at myself, she admits. I know enough about technology that this shouldn’t have happened.
How bank staff prevented further fraud
On the day when Darla prepared the cash for delivery in the shoebox, she faced challenges withdrawing such a substantial amount due to protective measures implemented by the large regional bank where she held an account.
While Darla was unable to retrieve the funds she had already given to the scammers, she did recognise the fraudulent activity in time to avoid draining an annuity and other investments she had intended to hand over to them. She attributes her financial protection to the diligent efforts of her bank’s staff. During a visit to one of their branches that day, the bank manager had a conversation with her. As luck would have it, they had just exited a meeting about fraud prevention at their headquarters. He pulled her aside and urged, “Don’t go through with this. Please reconsider.” Reflecting on that moment, Darla acknowledges it was unwise not to trust her bank.
Banks are proactively educating consumers about security
In their efforts to keep customers informed about secure banking practices, banks utilise various channels such as emails, in-app alerts, social media updates, webinars, and virtual workshops. Additionally, many institutions integrate security protocols throughout the banking experience for customers. Some banks enhance awareness by creating informational hubs on their websites featuring articles on safe banking practices. For instance, Chase Bank has a dedicated Security Center webpage that offers guidance on topics like Creating solid passwords, Identifying scams, Reporting fraud, Safely using Zelle, and Protecting seniors from fraud and scams.
According to Darius Kingsley, who oversees consumer banking practices at Chase, the company prioritises customer account security by providing various privacy and safety features on its mobile app and website. They also share online guidelines for safe banking. Additionally, Chase conducts in-person informational sessions at branches to educate clients about secure online banking. Some financial institutions are encouraging customers to adopt strong cybersecurity habits. For example, Fifth Third Bank offers a complimentary SmartShield service that includes fraud monitoring, threat blocking, and enhanced login security. This service features a protection meter that evaluates a customer’s security efforts on a tiered scale, with exceptional being the highest rating achievable. Users of SmartShield can improve their status within the app by completing tasks like updating passwords or participating in monthly quizzes, according to Ben Hoffman, chief strategy officer and head of consumer products at Fifth Third Bank. Since its launch earlier this year, over one million customers have utilised SmartShield’s benefits.
To further protect against bank fraud, consumers should remain vigilant and adopt best practices alongside the measures implemented by banks. Here are some common types of financial fraud and tips for safeguarding against them:
New account fraud occurs when an individual uses another person’s information to open new bank or credit card accounts or apply for loans. To mitigate this risk, consumers should regularly check their credit reports. At the same time, this is most effective for monitoring credit extensions; it remains an important precautionary step, according to David Liu, senior vice president of fraud & risk at identity verification firm Trulioo.
Account takeover fraud occurs when a scammer unlawfully accesses a consumer’s account, either by using their online login details or by posing as them over the phone. To combat this type of fraud, individuals can utilise password managers to create distinct passwords for each account. It is also advisable to activate two-factor authentication and register devices whenever possible.
David Liu, the senior vice president of fraud and risk at Trulioo, an identity verification services provider, emphasises these preventive measures.
Another form of financial crime is digital pickpocketing. In this scenario, criminals use a mobile point-of-sale device to contact a victim’s pocket or purse to execute unauthorised transactions. According to Visa’s biannual threats report, individuals need to keep their wallets secured and close to their bodies. Additionally, opting for wallets designed to block radio-frequency identification (RFID) skimming can provide extra protection, advises Marijus Briedis, chief technology officer at NordVPN.
Reflecting on my experiences at Money 20/20 and subsequent research and interviews has given me insight into how banks are leveraging artificial intelligence in real time to thwart fraudulent activities. It was particularly encouraging to learn about a large regional bank that empowers its staff members in branches to assist customers when they have suspicions about potential fraud proactively.
However, one key takeaway from my investigation is that banks still face significant challenges in sharing information regarding fraud prevention efforts. This collaboration is crucial, but existing regulations that restrict banks’ ability to innovate effectively in this area may hamper it.
Maxthon
In the contemporary digital landscape, where online banking has become an integral part of our financial lives, it is essential to take proactive measures to protect your sensitive information while using the Maxthon Browser. One of the first steps in this protective journey is to create strong and secure passwords for your banking accounts. These passwords should be intricate and distinctive, incorporating a mix of uppercase and lowercase letters, numbers, and special characters. Avoid using easily identifiable information such as birthdays or pet names that someone with malicious intent could easily guess.
If your bank offers two-factor authentication (2FA), it is highly advisable to activate this feature. By requiring an additional code sent directly to your phone or email alongside your password, 2FA provides a valuable layer of security that can significantly reduce the risk of unauthorised access.
Another vital aspect of maintaining online safety is regularly updating the Maxthon browser itself. Keeping your browser up-to-date allows you to benefit from the latest security enhancements and patches explicitly designed to address potential vulnerabilities. In addition to this practice, it’s prudent to routinely clear out your browsing history, cache, and cookies. This step helps eliminate any sensitive data that hackers could exploit if they ever gain access to your device.
For those who prioritise privacy during their online banking sessions, taking advantage of Maxthon’s privacy mode can provide an added level of security. This feature enables you to browse without retaining any data from those sessions—no cookies or site information will be stored—thus safeguarding against unwanted tracking.
Moreover, consider equipping yourself with reputable security extensions or antivirus plugins compatible with Maxthon; these tools can offer real-time protection against various threats, such as phishing scams and malware attacks.
As you navigate through online banking transactions, remain vigilant about potential phishing schemes. Before entering any personal information on a bank website, always verify that the URL is correct. Be particularly cautious about clicking on links received via email or text messages claiming to originate from your bank unless you have confirmed their authenticity.
Lastly, once you’ve finished all necessary transactions in your online banking session, make sure to log out completely. This simple yet effective act minimises the risk of unauthorised access should someone else use your device afterwards.
By adhering closely to these guidelines and practices while utilising Maxthon for online banking activities, you can significantly bolster the security surrounding your financial transactions in this increasingly digital world.