Social Engineering Is Changing the Fraud Prevention Game for Banks and Credit Unions

For banks and credit unions, fraud prevention has traditionally focused on one fundamental question: Is this customer really who they say they are? That question still matters. But in an era of increasingly sophisticated social engineering and AI-generated scams, it is no longer enough.

Today, a legitimate customer can be sitting behind a legitimate device, using legitimate credentials and passing a legitimate authentication challenge, while being manipulated into authorizing a fraudulent transaction. This changes the game for financial institutions as the priority can no longer be simply detecting suspicious activity after the fact. Prevention has to move to the center of the fraud strategy.

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