PROTECTING THE CONNECTED CONSUMER FROM REAL AND PERCEIVED FRAUD RISK

Sam Holding, Head of International, SparkPost

 

Experts have researched and observed that when there is an economic downturn, there is often a marked increase in fraudulent activity. Unfortunately, the global financial situation caused by the spread of COVID-19 has been the perfect storm for this kind of behaviour. A quick web search on the topic brings back tons of tips sheets and articles about how consumers can keep themselves safe during such a turbulent economic crisis. While these resources suggest that consumers take simple steps like ignoring robocalls and watching out for phishing emails, the amount of channels through which scammers can take action can feel overwhelming. Due to the increasingly interconnected nature of technology, an attack on one website or communication channel can lead to what feels like a domino effect – taking down a consumer’s personal “stack” one by one.

 

The nature of this interconnectedness has given rise to the “Connected Consumer”. This consumer persona represents the vast swathe of people who have smartphones and have not only grown accustomed to ultra-personalised digital experiences but, as a result, expect these types of dynamic solutions. It should also be noted that this is not specifically a Millenial or Gen Z phenomenon, but rather a trans-generational disposition for easy-to-use technology. While the Connected Consumer isn’t necessarily at a higher risk for fraudulent attacks because of how they interact with technology, the stakes definitely feel higher. Because they may use their Facebook or Gmail credentials to login to countless websites and apps, a single fraud attack can feel like a chink in the armor that protects their whole digital footprint.

 

Sam Holding

With the rise of the Connected Consumer, it’s likely no surprise that there is an incredibly high app adoption rate amongst financial services customers. While people may be quick to download retail banking apps, due to their broader online experiences, they expect a highly personalised experience – something the financial services industry hasn’t always been able to give. In an industry known for stringent security and privacy controls and conservative decision-making, adoption of the latest and greatest segmentation and personalisation technologies hasn’t always been possible. But anecdotally as users, we know that an outdated app experience is not only frustrating but may also lead to concerns about security. If the front-end looks antiquated, what’s to keep non-technical consumers from assuming what’s under the hood is old and lacking up-to-date security measures?

 

The, perhaps superficial, perceived threat around slightly outdated app experiences and the very real threat of fraud requires a multi-pronged course of action to keep Connected Consumers feeling safe. Fortunately, many of the steps required are actually low hanging fruit that don’t require technologists and security professionals to completely change their normal course of action. The best place for financial services companies to start is with their email programs. Since email is the backbone of customer communications when it comes to financial institutions, no amount of attention to detail and care is too great when considering new strategies.

 

The first updated strategy that can keep Connected Consumers feeling safe is applying a mobile-first attitude when sending email messages. This can be applied to the look and feel of the actual email template, but should also be applied to the links in messages as well. Hyperlinks in the body of emails should “deep link” back to the banking institution’s mobile app rather than their desktop site. For Connected Consumers, these deep links show that their bank’s email strategies are in lock-step with their app. And, rather than having to fumble through a website that may not be mobile friendly, consumers can use their thumb print or even their face to access sensitive financial information instantly. Quick and even topical changes like this can show consumers that their information is safe by using the security measures built into their phone.

 

Another easy change financial institutions can focus on to create a more streamlined and, therefore, more secure-feeling experience is improved customer service. Certainly, it’s important for support agents to be friendly and helpful, but in 2020 they should also be fully aware of all of the personalised email messages the specific customer they are trying to help has received. Keeping support teams abreast of the latest email marketing campaigns can close the loop on security regarding customer communications. If a customer has a question regarding an email offer they received, the support agent can authoritatively reassure the customer that the message is, in fact, valid. This creates an unparalleled sense of security.

 

When it comes to security, especially during a time in which fraud is increasing, retail banks can’t take any chances. Connected Consumers need their banks to provide digital experiences that not only are secure but feel secure, a challenge that may be easier to meet than most think. With a few simple changes, financial services organisations can keep consumers feeling safe and stable even when the world feels completely off-kilter.

 

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