Payment authorization fraud is targeting online banking customers, according to experts. In fact, security experts say that most online banking fraud occurring today is a result of customers being duped into paying scammers who are posting as a trusted entity. The scammer convinces the target that they a legitimate entity and eventually tricks the victim into transferring money into an account controlled by the attacker. Examples of this include crypto and romance scams.
Since the victim technically initiates and confirms the payment, many countries across the world are unable or refuse to refund losses that are a result of these scams. According to security firm Outseer, 75% of all digital banking fraud based on dollar value is a result of these scams. In the UK, lenders now are required to show a fraud warning before customers add new payees, and security checks will alert users if the payee name and bank details do not match. The security measures will help to prevent this type of payment fraud.
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