Survey: Real-time Intervention Is Key to Scam Protection

In my last post, I shared highlights from FICO’s 2024 Global Scams Impact Survey  and discussed the expectations that global consumers have for banks when it comes to scam detection and prevention. This time, I want to explore the sobering facts about the growth of scam communications and their impact, and consumer preferences for alerts when the bank identifies a potential scam.

Let’s start with the prevalence of scam communications. Our survey found that 73% of consumers globally said they received a text, phone call, or email they believe was part of a scam – 5% more than in 2023 – with nearly 80% in NORAM saying scammers had tried to contact them.  

Figure 1: Consumers that have encountered RTP scams, by region. Source: FICO survey.

Real-Time Payments (RTP) Are Ripe for Scams

Criminals use real-time payments (RTP) scams, also known as authorized push payment (APP) fraud, to convince consumers to part with their money using different tactics and techniques. Consumers who have received some sort of communication from a criminal may falsely believe they are purchasing an item, paying for a service, or making an investment. Criminals might also use a consumer’s personal information to try and coerce payment, or attempt an impersonation scam, where they use a false identity and pretend to be someone they are not to convince consumers to send money. Unfortunately, scam victims never get what they expect because the scammers have disappeared with their money.

Figure 2: Consumers that have suffered RTP scams. Source: FICO survey.

Our survey found that one in five consumers globally (20.5%) paid for goods, services, or investments but never received them. This ranged from a low of just 13% in EMEA to a high of 29% in APAC. LAC consumers took the dubious distinction of second place at 23%. And in NORAM, 16% of consumers paid for something they never received.

Friends and Family Face Scam Impacts

Consumers recognize that their friends and family members are at risk too. Globally, 56% of consumers now say they believe their friends or family members have been a scam victim, up 5% from 2023.

Regionally, this trend is most pronounced in LAC, where 69% of consumers say their friends or family members have been scammed – 8% more than in 2023. But even in NORAM, where less than half (47%) of consumers say their friends or family members have been scammed, we still saw a year-over-year increase of 6% from 2023.

Loss Value has Increased

It’s not just that more consumers are being scammed; the value of those reported losses has increased too. While it’s challenging to normalize loss values across the many different currencies reflected in our survey, the overall trend shows that the more consumers are experiencing losses in the lowest and highest value bands in our survey. Here are examples from each region:

APAC

• In India, 4% of reported losses exceeded ₹800,000 (about $10,000 USD) in 2024, a 2% increase from 2023. Reported losses less than ₹50,000 leapt from 36% in 2023 to 56% in 2024.

EMEA

• In Germany, 2% of reported losses exceeded €10,000 in 2024; there were no losses in this value range in 2023. 59% of losses were for less than €500, a slight (and anomalous) dip from 61% in 2023.

LAC

• In Brazil, 3% of reported losses exceeded R$10,000 (about $1,650 USD) in 2024, while only 1% did in 2023. Reported losses less than R$250 were 47% of cases in 2024, up from 46% in 2023.

NORAM

• In Canada, 6% of reported losses were for more than C$10,000 in 2024, whereas just 1% were in 2023 – a significant increase in the total number of high value losses among consumers. On the other end of the spectrum, 64% of reported losses were for C$500 or less, a 7% increase over 2023.

Loss Reporting also Increased

In addition to a greater number of consumers experiencing losses, those losses are now also being more frequently reported to the banks. We saw a 4% increase in customers that reported monetary losses to their banks in the past year – from 24% in 2023 to 28% in 2024. The increase in loss reporting holds true for every region but APAC.

In EMEA, LAC and NORAM, consumers who reported losses to their banks increased by at least 4%, with the greatest increase in EMEA (6%). In APAC, even though consumers who reported losses fell by 3%, more than a quarter (28%) of the consumer population in APAC still reported losses to banks, aligning with the global average.

Consumers Share Blame for Falling for Scams, But Perception is Changing

Losses result in significant monetary, emotional, and reputational impacts. Consumers are more aware of the potential for scams, and expect their banks to partner with them, as well as their friends and family members, to fight criminals and scams. The bottom line is that consumers expect to be informed, educated and protected – and they expect their banks to get that protection right.

Globally, a majority of consumers – 53% – say they would blame themselves first if they fell for a scam. And as accountable as this may seem, another third of consumers globally say they would blame either the sending bank (16%) or the receiving bank (17%) if they were to send a payment to a scammer.

By contrast, just 6% of consumers worldwide blame the criminals for RTP scams. While all of us are keenly aware that the criminals are at fault, this shifting perception of bank liability is one that banks would do well to note. By putting real-time scam detection and customer intervention technology in place, banks can continue to earn the trust of their customers while protecting them from scams.

How to Improve Scam Protection

Real-time intervention, and engaging consumers in their preferred channel, is a crucial way to break the scammers’ spell. It’s a key piece of the scam prevention puzzle for any bank.

By automating outreach across multiple communication channels, banks can improve security and operational efficiency, while keeping up with the speed of customers’ lives. Sensible friction – like requiring customers to verify legitimate transactions from fraudulent ones – can help your customers stop and think before sending any payments, to help prevent losses and poor experiences.

Stopping scams takes coordinated efforts and more than a little cooperation and collaboration with your customers. The right approach is a win for both the customer and your bank and helps stem the tide of losses to criminals.

How FICO Helps Fight Fraud from Scams

• Read the FICO 2024 Global Scams Impact Survey
• Learn how FICO’s award-winning scam detection model can spot more fraud, faster.
• Intervene in real time with FICO’s Customer Communications Services for Fraud.
• Read the reports on our scam survey by country:
  • USA
  • Canada
  • Germany
  • Netherlands
  • South Africa
  • Spain
  • Sweden
  • UK
  • India
  • Indonesia
  • Colombia
  • Mexico
  • Peru
  • Brazil

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