The elderly demographic is increasingly vulnerable to scam and fraud risks, such as phishing, SIM-swap fraud, and account takeovers. Sadly, in the U.S., there are over 8 million incidents of elderly fraud every year.
There is plenty financial institutions (FIs) can do to protect this often-vulnerable group. In this blog, we explore five ways FIs can safeguard seniors from everyday scams with modern authentication that fits their banking preferences — empowering them to bank with confidence.
There is plenty financial institutions (FIs) can do to protect this often-vulnerable group. In this blog, we explore five ways FIs can safeguard seniors from everyday scams with modern authentication that fits their banking preferences — empowering them to bank with confidence.
Banking scams: Elderly consumers are most vulnerable
It’s no secret that elderly customers may be less in touch with the latest technology or affected by cognitive decline, making them more likely to fall for basic scam tactics, like phishing attempts via email or SMS. For banks, the risk is just as great: once a customer becomes a victim, the bank faces financial and reputational losses, maybe even losing that customer to another bank.
Here’s an example. A fraudster calls an elderly customer, pretending to be a bank official. The fraudster tells the customer that they’ve noticed a suspicious transaction on their account. They ask the customer to please share the one-time passcode (OTP) that’ll be sent via email or SMS so that the bank can quickly investigate the matter and protect them from potential fraud.
The customer, likely feeling worried and overwhelmed at this point, shares the OTP so the “bank” can keep them safe. But then the fraudster uses the OTP to gain access to their account, drain it, and potentially perform an account takeover to support further fraudulent activity.
Here’s an example. A fraudster calls an elderly customer, pretending to be a bank official. The fraudster tells the customer that they’ve noticed a suspicious transaction on their account. They ask the customer to please share the one-time passcode (OTP) that’ll be sent via email or SMS so that the bank can quickly investigate the matter and protect them from potential fraud.
The customer, likely feeling worried and overwhelmed at this point, shares the OTP so the “bank” can keep them safe. But then the fraudster uses the OTP to gain access to their account, drain it, and potentially perform an account takeover to support further fraudulent activity.
"According to The Global Anti-Scam Alliance, older adults face rising scam risks, often losing more than money. A multi-layered prevention model is key to protecting them effectively.”
The solution: simple, modern authentication
Customers typically feel more comfortable using a familiar device to conduct their banking. In the case of elderly customers, more than 40% prefer to use a bank’s online banking channel accessed through a desktop computer or laptop, rather than a mobile device. And since that channel often relies on OTPs to protect customers from scams and fraud, and older customers are easily tricked into sharing those OTPs — banks need better solutions to protect them.
Along with continually educating customers not to give out their OTPs, FIs can safeguard their seniors by considering the following five technical safety measures:
Along with continually educating customers not to give out their OTPs, FIs can safeguard their seniors by considering the following five technical safety measures:
- Incorporate customer devices into the organization’s defense strategy: Turn a customer’s device, whether a laptop, desktop, or mobile device, into a secure, trusted device by binding a real-world identity to it.
- Prioritize low-friction, passwordless authentication: Deliver secure, user-friendly solutions — especially for older adults — like biometrics, silent authenticators, and device-based logins.
- Strengthen fraud protection measures for high-risk transactions: Implement adaptive security that steps up authentication only when risk signals indicate a high risk.
- Ensure protection across all customer channels: Deliver seamless, consistent security across all customer channels, including desktop devices.
- Build trust with visible, customer-centric security: Create digital experiences that reassure customers they’re protected, building long-term confidence in your brand.
How Entersekt helps FIs deliver stress-free experiences
Solutions that protect older adults from everyday social engineering attacks must be easy for them to use, while offering the strongest protection. Some of the ways in which Entersekt makes this possible is through:
- Passwordless authentication and biometrics for simple customer verification.
- Applying silent authentication when the risk score is low for a seamless customer experience.
- Leveraging strong device security that turns the customer’s device into a silent possession factor.
To make it as easy as possible for banks to support this demographic, Entersekt also supplies essential resources designed to empower call center staff in guiding elderly customers through activating our advanced, user-friendly authentication methods, including step-by-step instructions. Contact us to learn more.
Ensure all your customers can bank with confidence and peace of mind with Entersekt’s fraud prevention solutions:
- For banks and credit unions: https://www.entersekt.com/solutions/authentication
- For the Q2 platform: https://www.entersekt.com/solutions/q2-fraud-prevention
