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Scam Likely
I get four or five calls per day that T-Mobile US identifies as “scam likely.” Additionally, I get text messages that I think are probably scams. I’ve been offered health insurance that covers a new class of weight loss drugs and a high paying job that lets me work from home, and I’ve been threatened with a final DMV enforcement notice.
I thought I was smart enough to not get fooled by any of these scams. After all, I write about these topics for a living. Then, Walgreens started to call me about my prescription medication. Even though I had recently gotten a prescription there, I initially hung up the phone. But one day the caller ID from Walgreens popped up on my phone again. Perhaps I was tired, so I gave them all the personal info they wanted. They thanked me and hung up.
I’m not alone in falling victim to a likely scam. A new report published this week by Nasdaq Verafin estimated that total fraud in the U.S. cost $196 billion last year, with a 19% compound annual growth rate in the last two years. Banks have been some of the biggest victims dollarwise. U.S. banks reported or confirmed $179 billion in unauthorized, first-party fraud last year, with the same 19% CAGR. Big banks and small banks alike are hurting from this trend. Gay Dempsey, the CEO of Fayetteville, Tennessee-based Bank of Lincoln County, told a Congressional subcommittee last week that her $220 million bank’s fraud losses have exceeded its loan losses. A day after the Congressional hearing, President Donald Trump signed an executive order directing federal agencies to submit action plans to identify transnational criminal organizations that engage in this activity and propose solutions.
Clearly, something needs to be done. The Bank Policy Institute has recommended that social media and technology platforms adopt a “know your merchant” approach that would be similar to what banks must do to keep criminals from using the banking system. Telecommunications companies and messaging apps should be required to monitor their networks and alert customers. Also, Congress should empower telecoms, social media, messaging platforms and financial institutions to share data relating to scams and fraud. And regulators should give banks clear authority and safe harbor to delay or block transactions when they reasonably suspect fraud or a scam, the BPI says.
Let me know what you think should be done. I can be reached at nsnyder@bankdirector.com. Just don’t give me your social security, address or date of birth.
• Naomi Snyder, editor-in-chief for Bank Director
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