Fraud Management & Cybercrime , Fraud Risk Management , Mobile Payments Fraud

Will Customer Refunds for Scams Trigger First-Party Fraud?

M&T Bank's Karen Boyer on Why First-Party Fraud Is Hard for Banks to Detect
Karen Boyer, senior vice president of financial crimes, M&T Bank

The U.S. Consumer Financial Protection Bureau is mulling over whether to reimburse consumers for online scams and fraud, but this regulatory change could lead to an increase in first-party fraud, cautioned Karen Boyer, senior vice president of financial crimes at M&T Bank.

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"This is going to be another avenue that we as a financial industry, as well as fraud in banking, are going to be fighting with each other - whereas the fraudsters are making their payday," Boyer said.

The lack of a proper definition of fraud and scams in the financial industry is a potential problem, Boyer added. "The actual definition is vague. It varies not only between banks but also between customers. My opinion is that if you are using a bank channel to transfer money, it is not necessarily the bank's fault."

In this video interview with Information Security Media Group, Boyer discusses:

  • The potential impact of consumer reimbursement regulations on first-party fraud;
  • How to tackle the problem of account opening fraud;
  • The best tools to detect first-party fraud.

Boyer, who leads the financial crimes practice at M&T Bank, has more than 20 years of diverse banking experience, specializing in fighting fraud.

About the Author

Suparna Goswami

Suparna Goswami

Associate Editor, ISMG

Goswami has more than 10 years of experience in the field of journalism. She has covered a variety of beats including global macro economy, fintech, startups and other business trends. Before joining ISMG, she contributed for Forbes Asia, where she wrote about the Indian startup ecosystem. She has also worked with UK-based International Finance Magazine and leading Indian newspapers, such as DNA and Times of India.

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