“Hi Dad, it’s me. I need help logging into my bank account.” You’ve probably heard variations of this scam from customers, or perhaps even your own family members. Our digital age, with AI and mobile banking, has made our lives much easier, but it’s also made us more vulnerable to bad actors.
Fintech customers and customer support agents have been particularly vulnerable to digital fraud. However, your agents are also a key first line of defense against digital fraud. Below, we go over some of the challenges in fighting fraud, common scam examples and how your agents can help your company and customers fight back.
What are some of the challenges in fighting fraud in fintech?
The rise of digital banking and mobile apps has made it much easier for customers to access fintech products and services. However, it has also made it easier for bad actors to gain access to sensitive information and customer accounts. In fact, three-fourths of fraud attempts affecting fintech companies occur through digital channels such as online or mobile banking.
As fewer customers access support services in person, it’s become easier for fraudsters to trick unsuspecting agents into handing over customer data or access to their accounts. Likewise, it’s also become easier for these same actors to impersonate representatives from your company to trick customers.
What are some examples of digital fraud that affect fintech companies?
There are numerous examples of financial fraud affecting the fintech industry. Here are a few of the most common examples of digital fraud that fintech companies and customers may face:
- Phishing scams: Scammers impersonate your company or other trusted sources to get customers to hand over sensitive information so they can access their accounts. These often happen over email or text and can look very convincing.
- Internal bad actors: Employees who abuse their position to commit fraud against your company or customers.
- Unauthorized transactions: An individual steals a customer’s credit or debit card information to make unauthorized purchases.
- Identity theft: Bad actors steal someone’s personal data to open up accounts in their name or to take over the individual’s actual banking accounts.
- Social engineering scams: Criminals may use AI or other technology to manipulate someone’s emotions, tricking them into sending money or handing over sensitive information.
What is the impact of digital fraud in fintech?
Digital fraud negatively impacts both fintechs and their customers. The consequences range from financial loss to negative brand perception to psychological distress. We outline some of the many potential impacts of financial scams and cybercrime below.
Financial loss
This is probably the most obvious consequence when you think of financial fraud, but the impact can’t be overstated. In 2025, U.S. financial institutions lost an average of $3.8 million last year. That’s a more than 60% increase over the previous year.
Your company might suffer losses through unauthorized transactions or reimbursing customers. As the world moves away from in-person banking and financial services experiences and towards banking and finance apps, incidents of fraud are expected to continue to rise.
Negative brand perception and a loss of trust
Digital fraud can also negatively impact your fintech’s brand perception and reputation. Trust is vital for fintechs looking to acquire and retain customers.
For example, if a customer’s sensitive information or financial assets are compromised by an employee, either due to a lack of training or malicious intentions, your customers may switch to a competitor. In this case, customers churn largely because they lack confidence in your company’s ability to keep their information and accounts secure.
Psychological distress
Needless to say, if a customer loses financial assets or has their personal information compromised due to fraud, it can cause significant stress and anxiety. Eight out of 10 fraud victims report dealing with psychological distress.
It’s no surprise as to why. Fraud violates trust and privacy, and creates uncertainty about whether the victim will recover their financial assets or how the scammers will use their personal information. Fraud doesn’t just rob victims of their money or their data: it robs them of their peace of mind.
How do contact center agents play a role in digital fraud prevention?
The good news is that your contact center agents can act as a first line of defense against digital fraud. Below, we go over a few examples of how your agents can protect both your customers and your business.
Trained agents can act as a first line of defense for customers
With the right training, contact center agents can act as a first line of defense against scammers. For example, they can flag large transactions or unusual activity in a customer’s account. This can help stop a customer’s valuable information or money from falling into the wrong hands.
This can be especially critical for older customers, who may not be as digitally savvy. In one case, an agent at a bank in Canada alerted law enforcement after an older man withdrew $26,000 CAD, allowing police enough time to catch the scammer before the money was exchanged.
Additionally, training can help reduce the risk that your agents will unwittingly assist fraudsters in accessing sensitive information or customer accounts. For example, you might teach them to enforce strict protocols for verifying a customer’s identity and to follow the proper procedure for escalating suspected fraud incidents. These are just some of the many examples of why providing training to agents can help protect your customers and, in turn, your brand’s reputation.
Provide contact center teams with up-to-date support tools
Static manuals can quickly become outdated in our increasingly digital age. If your contact center agents don’t have accurate or up-to-date information to assist customers or navigate support interactions, both the agent and the customer may be vulnerable to bad actors.
If an agent can’t find the answer to a customer’s question, they may turn to the internet or use generative AI chatbots without your company’s approval. This means they may not get accurate answers or unknowingly access a spoofed site, raising cybersecurity concerns.
That’s why it’s so important to ensure your agents have access to a trusted internal knowledge base. This can help reduce the risk of bad actors accessing sensitive data or assets by providing agents with the latest best practices and answers to resolve customer support tickets. By empowering agents to provide fast, accurate guidance to customers, your agents can reduce customer vulnerability to fraudsters.
Agents can educate your customers
Your agents can also help prevent fraud by educating customers on steps they can take to safeguard their accounts. For example, an agent could send an article from your knowledge base that explains to customers what two-factor authentication is and how it keeps their accounts safe. They could then send an interactive tutorial that provides step-by-step guidance on how to enable two-factor authentication.
Additionally, your fintech customer support agents could educate customers on how to spot the warning signs of a phishing scam and how to report it. Your agents are typically the team members who interact with customers the most. By providing accurate resources via email, chat or SMS, they can empower customers to keep their accounts secure and help drive digital adoption.
Fintech customer support agents are on the front lines against fraud
Fintech customer support agents are critical to fighting fraudsters and scammers. Digital banking and financial services apps have made it easier for bad actors to steal both customers’ money and personal data. As the people your customers interact with the most, agents play a critical role in securing customer accounts and educating them about the warning signs of scams.
By providing agents with proper training and up-to-date tools for navigating service interactions, you can make them a critical part of your strategy to protect both your customers and your brand.
Are you looking for more insights on how to provide customers with more effective digital banking support? Our e-book contains original research on overcoming key operational challenges and scaling support. Download your copy today.
