Professional scammers exploiting outdated verification and authentication technologies are to blame, not consumers
LONDON, June 7, 2022 /PRNewswire/ — Callsign, the pioneer of digital trust, has published research on the psychology of scams, showing that humans aren’t infallible, but technology can help. Estimated cost to the global economy US$5 trillion every year, and despite organizations’ best efforts to warn and educate consumers, scammers continue to succeed.
Scams are hard to spot, and financial institutions and consumer protection groups have tried to protect consumers with scam warnings and education on the signs to look out for. But with scammers tricking their victims into navigating warning messages and security measures, it’s impossible to rely solely on victim education as a method of scam prevention. Indeed, scams play on human fears and create stressful situations. Call sign research reflects this, finding that four out of five consumers worldwide have received a fraudulent message. But 50% of Callsign survey respondents said it was easy to avoid online scams because it’s ‘common sense’ – the reality is that scammers manipulate victims into acting differently.
Psychological studies show that when people read warnings they are in what psychologists call a “cold state” – calm and dispassionate, but when at risk they are in a “hot” state, stressed or emotional. In a calm state, people are likely to read the warning messages and take note to be careful, but when in a hot state, all advice is forgotten. Our research is consistent, with 86% of respondents saying they read scam warning messages, but 58% said they still didn’t do anything different as a result.
“A different approach to fighting scams is needed and technology can help. Detecting scams is not enough, we need to use behavioral psychology to help people nudge. The general warning messages to people in their cold state aren’t effective scam prevention methods, we need to tell people what to do, when they need to do it,” says Amir NoorialaSales Manager, Callsign.
Callsign’s dynamic intervention software works by detection, intervention and protection. The software detects when consumers are at risk of being scammed by identifying changes in normal behavioral patterns, which can indicate coercion and framing. The intervention is then done in real time by contextual and dynamic warnings in real time based on the intelligence and the type of transaction in progress. Finally, the customer can be protected by a real-time policy change, for example by preventing the transaction and the scam from taking place. It is essential to combine education with good fraud detection, intervention and therefore prevention.
“There is a common perception that humans are to blame for online scams, but they are hard to detect and difficult to prevent. Humans react and behave in different ways in calm and stressed states, and technology can help interpret this behavior and keep consumers The root cause of online scams is technology, as service providers fail to deploy adequate detection, response and prevention methods,” added Nooriala.
To download the free eBook, click here. Registration is not compulsory.
The callsign is at Money 20/20 Europevisit stand B40 for more information and a demonstration of the dynamic intervention software.
About the callsign
Callsign is a pioneer in digital trust through proprietary technology that uniquely mimics how humans identify in the real world. Positive identification of genuine users ensures privacy, security, and minimal friction while ensuring bad actors are blocked. With a simple swipe or keystroke, users can be personally recognized with 99.999% accuracy, delivering the highest fidelity of AI-powered user recognition for the digital world. To learn more about how this technology is being used to build digital trust in financial institutions, governments and commerce around the world, visit: https://www.callsign.com/
Logo – https://mma.prnewswire.com/media/1833444/Callsign_Logo.jpg