This presentation by the Money 2.0 Conference reviews the advent of neo-banks and the types of spam, fraud, and scams being perpetrated by fraudsters in this arena.

1. Neo Banks: Scam, Fraud,
and Prevention Ways
Money 2.0 Conference Reviews This Problem

2. What Are Neo Banks?
A neo bank is the most recent iteration of a banking system that uses AI-based
tools and technology to work in digital mode.
Neobanks are fully digital, meaning they don't have any physical branches and
instead offer services through mobile applications. They provide the consumer
tools to rapidly set up an account, monitor their money in real-time, and conduct
online transactions from any location.

3. Types Of Neo Bank Frauds
Account opening fraud
Identity theft
Fraud rings
Transaction risks

4. Account opening fraud - To get a line of credit, fraudsters attempt to create new
accounts by impersonating real customers or by exploiting stolen or
manufactured identities.
Identity theft - Scammers steal people's identities by utilizing sophisticated
social engineering techniques like phishing and vishing to access their accounts.
Fraud rings - Fraud groups organize the attacks against neo banks. Scammers
take advantage of the system by purchasing items, claiming benefits, and
maximizing present credit with stolen cards and personal identities.
Transaction risks - By claiming bogus chargebacks, bad actors inflict financial
damages.

5. How To Prevent Neo Bank Frauds?

6. Make Use Of Proven Fraud Protection Technology
According to Money 2.0 Conference’s experts, the most
significant protection against digital banking and payments
fraud is to detect and eliminate risks before they cause any
harm. A multi-tiered strategy for fraud protection has shown to
be incredibly effective in preventing phishing and other types of
assaults.

7. Inform Your Consumers
It is crucial to constantly educate clients about the risks of fraud. Realistic
assessments of the hazards they confront, warning signs, and advice for conducting
business properly have all been demonstrated to be favorably welcomed.
Consumers are tension-free when banks demonstrate that they have proactively
safeguarded their digital channels and are constantly analyzing their choices.

8. Meaningful Messages
As discussed at the Money 2.0 Conference, the most dependable method is
multi-factor, out-of-band customer authentication, which is significantly more
successful than OTPs alone in minimizing different sorts of fraud, including
account takeover scams and man-in-the-middle assaults.

9. Final Thoughts
Neobanks are a relatively recent phenomenon, and this industry still has much-
unrealized potential. As reviewed at Money 2.0 Conference, strict regulations can
be enforced on these institutions to safeguard the public's interests, but they can
also be amended and loosened if the conduct of these new commer justifies
them.

10. THANK YOU!
Presented by:
Lakshay Mohanpuriya, Manager
Money 2.0 Conference USA