Finance & Banking,
Fraud Management & Cybercrime,
Fraud Risk Management
Insights from Jason Costain on the Learning Opportunities Between Traditional and Digital Banks
Digital-only banks are often lauded for their rapid transactions and streamlined online services; however, they have been criticized for their inadequate support for victims of financial scams. Jason Costain, who previously led fraud analytics and threat management at NatWest Group, highlighted this issue, noting that without physical branches, victims frequently find themselves entangled in a frustrating cycle of chatbot interactions.
Context: For those seeking deeper insight, consider reading about the escalating costs and challenges associated with data breaches.
Costain expressed concern that while fintech companies are proficient in digital advancements, they often falter at the critical moment of a security incident. The lack of direct communication channels with trained personnel can leave fraud survivors feeling abandoned, as they struggle to navigate ineffective automated support systems. This gap in customer care becomes even more troubling during urgent situations when immediate human assistance is required.
Many digital banks were designed without the complexities of traditional banking in mind, often lacking call centers or specialized fraud response teams. Instead, their reliance on online chat services becomes a liability, especially in crisis scenarios where timely human intervention is necessary.
In a recent interview with Information Security Media Group, Costain elaborated on several pressing topics, including the reasons victims of scams are increasingly dissatisfied with digital banking services, the regulatory requirements that are emerging to ensure quicker reimbursement processes for scam victims, and how current fraud monitoring deficiencies are becoming evident through scam-related payment data.
With over three decades of experience in combatting fraud, Costain has established a reputation for spearheading successful fraud defense initiatives at major financial institutions. His expertise encompasses various domains, including fraud defense systems, authorized push payment (APP) fraud, biometric verification, big data, and artificial intelligence, exemplifying the multifaceted challenges encompassing modern banking security.
