In many countries, financial institutions are responsible for amounts lost to scammers via their systems.
As technology advances at the speed of light and artificial intelligence (AI) becomes ubiquitous, so banking scams have proliferated.
Many of them are variations on the “phishing schemes”, where a plausible, even AI-generated, voice on the end of the phone line persuades you to part with your personal passwords and PIN numbers.
Many of those being taken in these days are older people, unfamiliar with tech and perhaps more open and trusting.
Some lose their life savings to the crooks. But the horrific thing is that, in many cases, banks repudiate all claims against them for reimbursement for money lost, arguing that carelessness on the part of the client is to blame.
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While that argument has some merit, the reality is that new-fangled – and vulnerable – systems and processes have been introduced to benefit banks and not their clients.
The risk is disproportionally heaped on the client. And what about the elephant in the room: are bank insiders involved?
It’s a question met with denials. In many countries, financial institutions are responsible for amounts lost to scammers via their systems.
We think our government should put in place similar laws to ensure our most vulnerable people are protected from the evils lurking in cyberspace.
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