Given the response strategies to the COVID-19 pandemic implemented by federal, state and local governments globally, consumers’ behavioral changes during this phase, and Financial Institutions’ (FIs) staffing and mobility constraints, fraud prevention must be tackled in a different manner.
Due to restrictions on physical movements, there is an inability of consumers to physically verify any claims that may be made related to their organizations or intents. The best that people can do is to call friends and family on the phone to confirm what a fraudster has claimed.
In addition, with minimal social contact outside of immediate family, and often not even that, victims can fall prey more easily to a smooth-talking fraudster. Psychologists have reasoned that “any stroke (+ve or -ve) is better than no stroke at all”. (Stroke here refers to an interaction between two humans.) Read more
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