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In a noisy digital world, capturing the attention of online users can seem impossible. While a 2015 study claimed that the average consumer’s attention span had shrunk to just 8 seconds, a more recent global study by Yahoo and OMD Worldwide shows that Gen Z consumers lose active attention for ads after just 1.3 seconds—less time than any other age group.[1] Financial institutions are always looking for ways to attract more online users and earn new business by delivering the value consumers want and need. If you want to grow your customer base, add identity protection to the financial services you already offer. Providing complementary identity protection solutions alongside your existing service offerings can make your business more marketable and attract more new customers. This is a great way to earn more market share while delivering value that consumers want. What do consumers want? Consumers want control over their data and personal information from a company they trust. Research shows they are more likely to partner with a brand they’re already loyal to, such as their bank. 57% of consumers would like their primary financial institution to provide or offer an identity protection service.[2] In addition, consumers have indicated interest in having all their financial data accessible in one place.[3] In this same vein, an all-in-one identity protection solution that reduces risk and gives consumers more control over how their data is used online is a convenient, in-demand solution that can help decrease vulnerability and limit online exposure. Consumers want these high-value, high-demand tools, and data shows that they are willing to pay for it. 89% of consumers want more control over how their data is collected and used online, and 82% are willing to invest time and money to better protect their privacy.[4] While proactive services for identity protection are important, not all fraud incidents can be avoided. In addition to providing anticipatory protection solutions, consumers need a response plan in place if they experience an identity theft or fraud event. Proactive protection and reactive restoration Unfortunately, victims of identity theft spend an average of 6.3 hours resolving identity fraud.[5] With identity protection and restoration services in place, you can assure potential new customers that if the worst should happen, you can help them reclaim their exposed information and restore their identity. For example, consumers can save up to 177 hours of time by using Experian’s Digital Identity Manager, a tool that helps protect consumer data and reduce vulnerability to theft.[6] Resources like these, coming from a trusted source, can put consumers’ minds at ease and make it easy for them to decide to do business with you. Identity protection from a trusted source Consumers are seeking protection from identity thieves, and they expect it from a trusted source. Offering Experian’s Identity Protection Services can help you stand out by providing valuable financial security to new customers, encouraging more new names to do business with your company. Identity Protection Solutions from Experian are best-in-class, and we have the results to prove it: 96% of active Experian subscribers with a free bundle were still subscribed after 12 months (Experian data, August 2023)  90% of active Experian subscribers with a paid bundle were still subscribed after 12 months (Experian data, August 2023)  Less than 1% churn rate with fewer than 100 service calls Visit our website to learn more [1] Insider Intelligence, Gen Z has a 1-second attention span. That can work to marketers’ advantage. 2022. [2] Javelin Strategy and Research, 2022. [3] MX, What Consumers Really Want from their Financial Providers: A 2023 Roadmap. [4] Cisco 2022 Consumer Privacy Survey, 2022. [5] Javelin, 2023 Identity Fraud Study. [6] Experian Data, average user experience with Digital Identity Manager, May 2023. This article is provided for general guidance and information.  It is not intended as, nor should it be construed to be, legal, financial or other professional advice.  Please consult with your attorney or financial advisor to discuss any legal issues or financial issues involved with credit decisions.

In today’s fast-paced world, the telecommunications industry is not just about connecting calls or sending messages. It’s about creating seamless digital experiences, especially when onboarding new customers. However, with the rise of digital services, the industry faces an increasing challenge: the need to mitigate fraud while streamlining the onboarding process.  The digital onboarding revolution Digital onboarding has transformed the way customers join telecommunications services. No longer are people required to visit a physical store or wait for lengthy paperwork. Instead, they can sign up for mobile, internet or TV services from the comfort of their homes, often within minutes. The convenience, however, has opened new doors for fraudsters. As the onboarding process happens online, the risk of identity theft, synthetic identity fraud and other fraudulent activities has surged. So, how can telecom companies provide fritctionless experiences while keeping fraud at bay? Mitigating fraud in telecommunications onboarding Know your customer (KYC) verification: Implement robust KYC solutions to verify the identity of new customers. This may include identity document checks, facial recognition or biometric authentication. Device and location data; and velocity: Analyze the device and location data of applicants. Does the device match the customer’s claimed location? Unusual patterns could signal potential fraud.  Behavioral analysis: Monitor user behavior during the onboarding process. Frequent changes in information or suspicious browsing activity may indicate fraudulent intent.   Machine learning (ML) and artificial intelligence (AI): Leverage AI/ML algorithms to detect patterns and anomalies humans might miss. These technologies can adapt and evolve to stay ahead of fraudsters.   Document verification: Use document verification services to ensure that documents provided by customers are genuine. This can include checks for altered or forged documents. Industry data sharing–consortia: Collaborate with industry databases and share fraud-related information to help identify applicants with a history of fraudulent activity or reveal patterns. The balancing act While it’s crucial to mitigate fraud, telecommunication companies must strike a balance between security and a seamless onboarding experience. Customers demand a hassle-free process, and overly stringent security measures can deter potential subscribers. By combining advanced technology, behavioral analysis and proactive fraud prevention strategies, telecom companies can create a secure digital onboarding journey that minimizes risk without compromising user experience. In doing so, they empower customers to embrace the convenience of digital services while staying one step ahead of fraudsters in today’s interconnected world.  Learn more about Experian and the telecom industry Learn more about our fraud and identity solutions

Authorized Push Payment fraud, also known as APP fraud or APP scams, involves a fraudster persuading a victim to willingly deposit funds to their account or to the account of a complicit third party, also known as a money mule. This type of fraud often includes social engineering of the victim using fake investment schemes, impersonation scams, purchase scams or other schemes. Social engineering clouds victims' judgments and encourages them to make payments willingly to one or more money mules, with funds eventually reaching fraudsters' accounts. This type of fraud has become more attractive to criminals since the advent of real-time payment systems, which are now a reality worldwide. Fraud fueled by real-time payments Authorized push payment fraud is becoming more prevalent, and it is imperative that you know how to detect and prevent it to safeguard your organization. Real-time payment systems, such as Faster Payments in the United Kingdom (UK), PIX in Brazil, the New Payments Platform in Australia, and FedNow in the USA, make real-time payment fraud a reality.  APP fraud is notoriously difficult for banks to prevent because the victim is sending the money themselves, and steps that banks take to authenticate customers are ineffective, as the customer will pass identity checks. The victims cannot reverse a payment once they realize they have been conned, as payments made using real-time payment schemes are irrevocable. APP fraud is particularly prevalent in countries where banks have an infrastructure that facilitates fast or immediate transfers, like the UK. Learn more about the new UK legislation around APP fraud Reimbursment is vital to victims Some common types of authorized push payment fraud include attacks on individuals like romance scams, family emergency swindles, targeting property transactions, and intercepting supplier payments. To protect against APP fraud, it is important to employ layered fraud protection across all products and channels used to manage real-time payments. But that alone is not enough. Reimbursement is vital in reversing the financial distress caused by APP scams, but it cannot reverse the emotional distress these scams cause. Prevention, detection, and awareness measures must be moved up on the agenda for banks, non-traditional lenders, PSPs (Payment Service Providers), and customers alike to ensure that the customer is protected at every stage of the payment journey.  Effective alerts are a key focus area for preventing customers from falling victim to APP scams. An effective warning is one that is dynamic and tailored to the customer’s payment journey. Recent research indicates that minor changes to notifications across banking apps can have the potential to drastically reduce the number of individuals that fall victim to APP fraud. The biggest effects were achieved when a combination of risk-based and Call to Action (CTA) warnings were implemented over a period of time. A collective effort across the banking industry and beyond is crucial to protect customers and tackle the fight against APP fraud. Banks, non-traditional lenders, and PSPs can raise awareness to educate their customers on the signs and risks of APP scams, and work with industry oversight bodies to commit to voluntary standards and codes to ensure good customer outcomes. Online forums, social media platforms, and influential voices also have a role to play in raising awareness of and preventing scams. Customers can also help by being vigilant and reading and acting upon warnings and information presented to them.  Authorized push payment fraud prevention To effectively combat authorized push payment fraud, financial institutions must implement a range of measures, including:  Direct communication with consumers.  Enhanced transaction monitoring.  Effective risk mitigation and management.  Improved employee education.  Public awareness campaigns.   In response to this growing threat, banks have introduced various checks and balances, such as the Confirmation of Payee (CoP) service in the UK, which cross-references bank details with the account holder's name when processing online payments.  Banks are also leveraging sophisticated fraud prevention software stacks, incorporating machine learning and contextual data to identify and flag suspicious transactions. By utilizing AI technologies, financial institutions can process  data points faster and enhance their fraud detection capabilities, mitigating identity risk and safeguarding customer accounts. Clear communication with customers is essential in the fight against APP fraud. Higher-risk companies now include warnings in their communications, advising customers not to act on messages that request payment into new bank accounts.  Financial institutions can also offer cool-off periods before payments are sent, increase due diligence around payment destinations, and monitor accounts that regularly receive high-value payments. Additionally, financial institutions can play a crucial role in educating their customers and promoting awareness around this increasingly common type of fraud. By combining these approaches with robust fraud prevention software, the public can fight against this type of fraudulent attack.  Taking the next steps with the right partner At Experian, we offer rich data sources, advanced analytics capabilities, and the consultancy services needed to rapidly adopt data analytics solutions that mitigate fraud risks. Our solutions are used by PSPs of all types and sizes – including some of the largest banks – to identify potentially fraudulent customers and transactions, and to ensure that action is taken in real time to prevent fraudulent payments being made.  Learn more about our fraud management solutions *This article leverages/includes content created by an AI language model and is intended to provide general information.