Learnings from a Cyber Fraud Incident that Happened to a Blood Relative:
This recent cyber fraud experience revealed that banks are central to facilitating such scams, yet they often lack proactive efforts to mitigate the damage. Although banks are committed to securing funds, certain key practices could greatly enhance protection, especially for vulnerable customers like senior citizens.
In this case, the bank employee at the counter sensed distress in the account holder and overheard the conversations with the scamster. However, the employee assumed it was a medical emergency and processed the transfer, despite knowing the amount was being sent to a finance corporation, not a hospital.
Here’s What Should Have Happened but Didn’t:
🔹 Verification on High-Value Transactions
Banks should verify large transactions, especially when fixed deposits are broken or money is transferred to third-party current accounts. Often, bank managers call to promote schemes when large deposits are made but don’t initiate contact when a long-held fixed deposit is broken.
This did not happen in this case.
🔹 Attention to Unusual Behavior
Staff members at the bank should follow up with account holders who are acting strangely, especially if they are elderly and appear to be under the influence of a call.
This did not happen in this case.
🔹 Joint Account Security
For jointly held fixed deposits, banks should confirm consent from all holders before large transactions are processed.
This did not happen in this case.
🔹 Information on Cyber Threats
Banks should provide clear guidance on cyber scams, offering pamphlets or advisory messages. Unfortunately, many branches lack posters or pamphlets on fraud awareness.
This did not happen in this case.
🔹 Restrictions on Large Credits to New Accounts
Banks should restrict large credits into new current accounts temporarily, especially when received from individuals, and confirm with both sender and recipient. However, under pressure to open more accounts, staff are often opening current accounts for scam companies nationwide.
These missed actions in this incident highlight areas where banks can strengthen their protocols to protect customers from fraud.
#CyberFraudAwareness #BankSafety #ProtectSeniors #SecureBanking
#DigitalFraud #FinancialSafety #BankingAwareness #Accountability
#CyberCrimePrevention #CustomerProtection #StopCyberScams
#FraudPrevention #StaySafeOnline #ProtectYourMoney
#BankingResponsibility
