Increasing Consumer Education Amidst Fraud Attacks

In response to fraud attacks that are increasingly targeting individuals, there have been ongoing calls to enhance consumer education. Many financial institutions have introduced security centers within their mobile banking apps to keep customers informed about the latest threats.

Although this is a positive step, according to
Lea Nonninger, Digital Banking Analyst at Javelin Strategy & Research, in her report titled

Security Centers in Digital Banking: How to Tell an Empowering Story of Prevention, Detection, and Resolution

, many security centers still have room for improvement.

Shifting to Empowerment

Historically, financial institutions tended to handle security issues behind the scenes with the rationale that excessive updates might distress customers.

“Over the last five years, we’ve seen a shift in this narrative where banks now focus on providing tools for customers to enhance their own security. After all, the customer is often the weakest link,” said Nonninger.

“Customers frequently overlook basic steps to protect their accounts and are unaware of available security measures.”

With this realization, financial institutions should now prioritize integrating more education within their security centers. This can boost customer confidence in recognizing and addressing fraud, leading to greater satisfaction with banking services.

However, creating a security center is only the first step of an effective fraud protection strategy; it must be part of a broader initiative.

“Do these centers truly empower customers?” Nonninger queried. “One key point in digital banking is not just about security but also security empowerment—ensuring customers feel confident and know what they can do to improve their situation.”

Measuring the Effectiveness

To gauge the effectiveness of security centers, the Javelin report examined three main areas: prevention, detection, and resolution. It became evident that there is substantial room for improvement.

“We analyzed specific features in security centers across banks and found a decline in support for comprehensive feature suites,” Nonninger reported. “Many banks have security centers but often lack the essential tools to prevent fraud.”

“Lack of relevant articles and interactive media makes it difficult for customers to effectively detect fraud, and even if they manage to resolve an incident, they are left with few options,” she added.

To effectively combat fraud, the first step is prevention. For instance, updating consumers on emerging attacks such as phishing emails can be highly beneficial.

A dedicated section in security centers that informs customers about these hallmarks could significantly aid in preventing such incidents. The current content often lacks detailed and impactful information that could engage users.

Additionally, the organization of information within security centers is frequently unclear, leading to deterred exploration by some users.

The End of the Road

For effective fraud detection, customers need to understand monitoring their account access and tracking financial movements. Alerts can play a crucial role in notifying them of any unusual activity.

The report highlighted that resolving fraud is another long-standing challenge for many institutions. “It’s critical to provide tools that enable customers to resolve issues through an end-to-end digital solution,” Nonninger emphasized. “We observed this feature absent from all banks, creating a significant gap in customer support.”

Fine-Tuning the Story

Another opportunity for financial institutions is centralizing educational materials so that they are easily accessible within digital banking platforms.

“All this information should be centralized to ensure customers who visit the security center can find what they need,” Nonninger suggested. “It’s about creating a cohesive user experience and ensuring all essential parts are available.”

Despite these gaps, financial institutions have made notable progress in consumer education.

“What was interesting for this report is seeing that we’re moving in the right direction,” Nonninger concluded. “Banks recognize the importance of empowering customers, and now it’s about refining security centers to ensure they contain all necessary elements without overwhelming users.”