According to Callsign, consumers are not responsible for the spread of online scams
Professional scammers exploiting outdated verification and authentication Technologies are to blame, not consumers
LONDON, June 7, 2022 /PRNewswire/ — Callsign, the pioneer of digital trust, has released research on the psychology of fraud that shows humans aren’t infallible, but technology can help. Estimated cost to the world economy $5 trillion annually, and despite organizations’ efforts to warn and educate consumers, scammers continue to thrive.
Detecting fraud is difficult, and financial institutions and consumer groups have tried to protect consumers with fraud alerts and education on the signs to look out for. But because scammers train their victims on how to use alerts and security measures, it’s impossible to rely solely on victim education as a method of fraud prevention. This is because scams play on human fears and create stressful situations. Callsign research reflects this, finding that four out of five consumers worldwide have received a fraudulent message. But 50% of Callsign survey respondents said it’s easy to avoid online scams because it’s “common sense” — the reality is scammers manipulate their victims into acting differently.
Psychology studies show that people who read warnings are in what psychologists call a “cold state” — calm and dispassionate, but when they’re in danger they’re in a “hot,” stressed, or emotional state. In the calm state, people are likely to read and take note of the warning messages to be cautious, but when in a hot state, all advice will be forgotten. Our research agrees that 86% of respondents say they read fraud alerts, but 58% said they do nothing differently because of it.
“A different approach to fighting fraud is needed, and technology can help. Detecting fraud is not enough, we must use behavioral psychology to nudge people. Blanket alerts to people in their cold state are not effective methods of fraud prevention, we need to tell people what to do at the moment they need to do it,” says Amir NoorialaChief Commercial Officer, callsign.
Callsign’s dynamic intervention software works through detection, intervention and protection. Software recognizes when consumers are at risk of being scammed by identifying changes in normal behavioral patterns that could indicate coercion and coaching. Intervention then occurs in real-time through contextual, dynamic, real-time alerts based on the intelligence and nature of the ongoing transaction. Finally, the customer can be protected by changing the policy in real time, for example by preventing the transaction and fraud. Combining education with good fraud detection, interventions and therefore prevention is key.
“There is a general perception that people are responsible for online fraud, but they are difficult to detect and difficult to prevent. People react and behave differently in calm and stressed states, and technology can help interpret that behavior and keep consumers safe. The root cause of online fraud is technology due to service providers not using proper detection, intervention and prevention methods,” Nooriala added.
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About call sign
Callsign is pioneering digital trust through proprietary technology that uniquely mimics how people identify in the real world. Positive identification of real users provides privacy, security, and minimal friction while ensuring bad actors are blocked. With a simple swipe or tap, users can be personally recognized with 99.999% accuracy, bringing the highest fidelity AI-based user recognition to the digital world. To learn more about how this technology is being used to increase digital trust between financial institutions, governments and commerce around the world visit: https://www.callsign.com/
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