New Technology To Combat The Fraud In Fintech: Rescue Tactics For Neobanks
Table of Contents
What Is A Neobank?
How Neobank Can Keep Up With The Scams Common Frauds In NeoBanks
What Is A Neobank? → As the name suggests, neobank is a digital bank with no physical branches; hence it is accessible entirely online. → The best thing about neobanks is that they simplify financial services for today’s tech-savvy customers. → Neobank keeps making a notable splash in the fintech industry as it efficiently bridges the gap between the capabilities of what traditional banks have to offer and the evolving needs of digital customers. → In addition to providing value-added services, neobanks are highly popular for their mobile-first services: online payments,
Common Frauds In NeoBanks Recently, eminent fintech summits like Money 2.0 Conference highlighted a few scams prevalent in the neobanks; let’s check their common types-
→ Account Opening Fraud: Account opening fraud occurs when scamming actors assume someone else’s identity and steal their financial information to open new accounts. Sometimes they carry out such deceptive tasks by stealing the identities or synthetic identities at the other time.
→ Identity Thefts: Criminals obtain an individual’s personal and financial details and use them to commit fraud using social engineering schemes.
→ Fraud Rings: When a group of spammers and scammers form an organization that seems legitimate to others and use advanced tools to defraud neobanks by luring them with ‘too-good-to-be-true’ schemes.
→ Transaction Risks: Criminals target neobank users and cause them massive financial losses by making them believe they have to clear out some illegitimate chargebacks.
How Neobank Can Keep Up With The Scams?
Finance Experts Shared Their Insights In Money 2.0 Conference About A Few Scamming Scenarios &
In Case Of Account Takeovers: Secure User’s Account To Avoid Any Takeovers.
Increased Fake Profiles: Use Advanced Technology To Filter Genuine Profiles From The Fake Ones.
Promo & Spam Abuse: Attract Genuine Users & Build Loyalty With Your Existing Customers.
Incentive Abuse: Be Sure Who You Collaborate With. If You Are Skeptical, Drop The Collaboration Plan.
Identity Fraud: The Most Important Factor In Stopping The Identity Theft Is By Having A Double-Check Of Your Customer’s Background.
The Presentation Is Prepared By
Thank You!
Vinayak Joshi, Manager, Money 2.0 Conference