Educate Users About Phishing and Fraud to Close the Trust Gap

Nov 18, 2019

Educating your banking customers about phishing and fraud to protect them and earn their trust may be more attainable than you think.

When innovations are poised to revolutionize the way we do things, they are almost always met with some degree of consumer skepticism. From the printing press to the modern day iPhone, many have jumped to erroneously prognosticate the failure of inventions that have gone on to redefine the status quo. As history often repeats itself, it should be no surprise that mobile and online banking initially faced a similar degree of skepticism and doubt.

That being said, public opinion is quickly evolving. According to a recent report by iovation, mobile transactions have increased from 29% in 2014 to 60% in 2019. Digital banking transactions have already surpassed branch-based transactions. And according to a recent study released by McKinsey&Company, more than three-quarters of U.S. consumers made a mobile payment of some type in the past year.

And yet, the fear of fraud and security breaches creates a significant trust gap that continues to fuel consumer apprehension around digital banking adoption over traditional banking behaviors. A quarter of the US adult population fits this description and can be described as “digitally-averse” - of this group, only half has completed a digital payment (McKinsey&Company).

How can banks work to close this trust gap? To do so, they must conquer their customers’ fear of the unknown.

Make phishing education a tenet of the customer experience

According to a 2016 Federal Reserve survey, 73% of respondents cited security concerns as a key reason for not using mobile banking or payments. Until non-digital customers know and understand how their data is protected, how to detect a mobile phishing attack and other information around their digital wellbeing, they will always perceive traditional banking practices as the safer, known quantity. The best way a bank can help customers overcome this fear and reduce the number of successful fraud attacks is by inculcating trust through education.

Successful education requires the ability to reach and engage customers over a channel they prefer and trust. Channel and alert fatigue have eroded the efficacy of traditional methods like email, phone, portals and apps, making it difficult for banks to get important information to their customers.

What if there was a way to establish a dedicated, mobile channel that educates users about phishing and fraud all while providing personalized, proactive support that drives digital enablement, greater customer loyalty and value?

Phishing and fraud prevention on a channel users can trust

Time and time again, banks come to us asking for a holistic strategy to deliver highly-personalized, one-to-one mobile experiences to customers in a safe and reliable way, acknowledging that this has become an industry standard capability. However, privacy and security concerns continue to impede even the most progressive and innovative financial institutions from offering personalized, mobile communications to their customers. Based on these requests and concerns, we developed Relay Verify.

Relay Verify pairs a preferred, mobile-first format with personalized, proactive experiences to prevent phishing and fraud by educating customers on an organization's communication practices, what to expect and what to avoid. At onboarding, when customers are most engaged, they receive a text message that takes them to a secure, dedicated feed that welcomes them to their bank and immediately establishes communication policies and fraud guidelines such as:

  • Dedicated short code used for all mobile communications
  • Information the bank will never request from a customer
  • Number to call and confirm the validity of a message or report suspicious activity

With an average user adoption of 88%, Relay Verify maximizes the number of customers who are digitally enabled. Once this connection is established and customers are trained to expect mobile communications from their bank, it becomes the most effective way to drive customers to take action at high-value moments like account funding, app and portal adoption, setting up direct deposit and much more. This helps to complete the transition of the previously digitally-averse into digitally-engaged customers.

Just as the iPhone has become a fully accepted, nearly ubiquitous innovation, if financial institutions successfully educate their customers and earn their trust, digital banking is sure to face a similar fate.

Learn more about Relay Verify