Many consumers believe they would not fall victim to classical fraud attempts, but criminals are becoming more sophisticated. In fact, 75 per cent of US shoppers will encounter scams when looking to buy things online. In an attempt to ensure consumers do not fall victim, the Financial Technology Association (FTA) is launching its annual campaign, Smarter Than Scams.
The national education campaign, in partnership with paytech giants, Cash App, PayPal and Venmo, aims to empower consumers with the tools to outsmart scams. Furthermore, it looks to ensure users are keeping their money and financial information safe.
It also brings awareness to the most common scams consumers face during the holiday season. For example, charity, gift card, imposter, invoicing, pet deposit, phishing, and romance scams. The campaign outlines key steps consumers can take to protect themselves:
Protect your personal information by safeguarding your login details, using different passwords across accounts, and keeping any sign-in codes or magic links private.
Be aware of account activity by ensuring your account notifications, such as two-factor authentication and alerts for new device logins, are turned on.
Pause before you pay by only sending money to people you know and trust and verifying and double-checking all recipient information.
Scams can happen anywhere to anyone
The holiday shopping season is an exciting time, but consumers must be extra vigilant, as scammers are more active than usual.
Brian Boates, science lead at Block
Commenting on how the Smarter Than Scams campaign can help shoppers, Brian Boates, science lead at Block, who oversees machine learning, artificial intelligence, and data science at the company said: “Millions of Americans use Cash App daily to manage their financial lives securely and responsibly,” said. “Given the increasing rate and complexity of scams, and the evolving tactics of malicious actors, Cash App adopts a multifaceted strategy to effectively combat scams and safeguard its customers – and this starts with education.
“We’re excited to continue working with our peers in the industry through efforts like Smarter Than Scams to empower consumers with the knowledge and tools they need to protect their finances.”
Empowering consumers through education
Aaron J. Webster, global chief risk officer at PayPal
“Approximately a quarter of the world’s digital commerce is powered by PayPal and Venmo each year, reflecting that our brands are a trusted choice for consumers,” said Aaron J. Webster, global chief risk officer at PayPal.
“PayPal and Venmo do not tolerate fraudulent activity on our platforms. We leverage industry-leading fraud prevention and detection models, strategies, and tools to proactively identify and stop bad actors. We are proud to partner with the Financial Technology Association on Smarter Than Scams and will continue to demonstrate our leadership by empowering consumers with the education and innovative real-time transaction insights needed to avoid common scams and fraud.”
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