Crooks are getting craftier about how they steal from consumers, and in response banks are developing more creative ways to warn their customers.
ID theft originating from scams — where criminals trick the victim into giving up personal information, such as by text or email — produced $43 billion in consumer losses in 2020, according to a study released this year by Javelin Strategy & Research. It was the first year the company sought to measure this more sophisticated spin on old-fashioned identity crime.
Financial services providers sustained an average loss of $1,100 in such incidents, the study found.
Banks risk losing customers who fall prey to scams and are dissatisfied with their bank’s response, even when the customers themselves provided sensitive information in the first place. Thirty-eight percent of identity fraud victims closed the bank accounts where the fraud took place because they were unhappy with the bank’s resolution, according…