Just as banking transactions in the digital channel are on the rise, so are account holders’ expectations that digital banking be both accurate and easy. Financial institutions (FIs) have ramped up their efforts to overcome the complexity of the past few months while cybercriminals have been working hard to take advantage of the industry’s increasingly fluid nature.
Rising fraud
Fraud was, unfortunately, already on the rise before 2020, with Javelin reporting an almost $2 billion increase in fraud losses from 2018 to 2019. But this year’s events are providing even more fertile ground for cybercrime. Not only do recessions and economic uncertainty create upswings in fraud, but a lot of bad actors are making use of current events, taking advantage of consumers’ worry and confusion.
We all need to be more vigilant about what we click on, where we spend, and how we work remotely – especially now. Unfortunately, fraud will occur no matter how vigilant FI professionals and account holders remain. And when it does occur, it’s important to make the process for responding to potentially fraudulent disputes as painless, fast, and efficient as possible.
The good news is dispute management doesn’t have to difficult. If your FI is still reliant on paper-based processes, in-person applications, and convoluted Excel spreadsheets, 2020 may be the appropriate time to invest in an automated solution to make dispute tracking easy.
FIs investigating automated dispute tracking should look for solutions that provide the following four benefits:
- Streamlined self-service experiences
With many consumers and businesses still social distancing, digital is increasingly the go-to channel. Offer your account holders a way to quickly and easily submit disputed transactions online. They’ll appreciate the from-home simplicity. (And let’s face it, filling out paper forms in response to cybercrime might not inspire confidence.) - Reduced workloads
Your back-office team might be more available to focus on account holder engagement and growing your business—not tied up in fraud-driven busywork. Traditional dispute management has a lot of manual touchpoints. Without automation, even a fairly small breach may divert your team from critical tasks. - Processes that work to ensure compliance
Manual processes invite mistakes, but automating your debit and credit card dispute management can ensure your FI adheres to guidelines and timelines for both Reg E (debit card) and Reg Z (credit card) compliance. - Valuable insights
Even if no mistakes are made and the workload is effectively managed, manual processes don’t create value. In contrast, automated solutions with reporting capabilities can reveal valuable information about fraud—from individual incidents to large breaches—and the impact on your account holders and institution.
Make things easier for everyone. For too many, 2020 has been a year of uncertainty and financial hardship. But, with the right solutions, FIs can turn a negative, like fraud, into a more positive experience for your account holders.
Learn how Q2’s CentrixDTS can ease the burden created by fraud for FIs and their account holders.
