COVID-19 has resulted in an accelerated shift towards digital banking, increasing fraud pressures and creating new ones. Customers have been driven from the safety of store and branch visits to the vulnerability of the online marketplace. Added to this the pandemic has critically damaged the economy, resulting in cost pressures. This perfect storm has introduced many new and lasting dynamics: the traditional working week is unlikely to return soon; the onset of an economic recession and prolonged recovery; and the continued digitisation of consumer services will mean less physical competition on the high street. All of these factors increase consumers’ exposure to fraud and economic vulnerability, leaving them more susceptible to fraudulent schemes.
Trends suggest that banks are more likely to be at risk, although there are some clear actions they can take. In our full report we address the operational dynamics behind these challenges and outline how banks can prevent fraud losses, while better engaging and protecting their customers.