Financial Crime News and Fraud Risk Management (Twitter Bank Fraud)

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CHAPTERS:
0:00 Twitter Turmoil
0:38 Should banks maintain their Twitter accounts?
0:54 Risks Posed by a Flood of Fake Accounts
1:50 Are FIs paying to clean up someone else's mess?

TRANSCRIPT:
Hi, I'm Richard Harris and welcome to this week's Feedzai Weekly Update.

This week, I'm in Saudi Arabia, a country which has changed a huge amount since I first started coming here in the early 2000s. One of the key changes is the use of social media.

More than 90% of the population here are using WhatsApp. More than half the country are Instagram users. And right up there with WhatsApp is Twitter usage, which is around about the same, 90%. And Twitter is very much on the minds of everyone this week with all the changes that Elon Musk has been making.

So on that very point, I just did a short interview with American Banker. See the link below to that article. But I thought I'd do an update from here just to expound on that and go into a little more detail.

One of the questions people have been asking me all around the globe is, should banks be maintaining their Twitter accounts? The answer to that is yes.

It's a little bit like asking a company back in the early 2000s whether they should bother creating a website for themselves. Yes, you've got to be on social media. You've got to manage your brand. You've got to have a voice.

The second question is, are banks at risk and are consumers at risk from this prevalence now of increased number of fake Twitter accounts? Yes, they are. They have been and they always will be.

Fraudsters are registering thousands of fake accounts every single day on all platforms to trap the unwary, the uneducated, or just the desperate. Social media has now become a platform for automation. It's fraud as a service. And this has become a major criminal issue globally.

We saw last week with Eli Lilly in the US that a single rogue tweet can affect the stock price of a major company. But more insidious than this are targeted spear phishing campaigns where fraudsters use social media to target consumers directly to get them to give away their details or trick them into sending them money.

If you align those fake Twitter accounts with fake Instagram accounts, fake websites, fake Facebook accounts, then you start to create an environment where a consumer can't even tell what's real anymore. That's what becomes really dangerous here. It's not just about one rogue Twitter account. It's about fraudsters creating an ecosystem to fool consumers.

So where does this all lead? Elon’s moves are clearly ironic, given that the changes he's made has made it even easier to create fake and bots accounts, something that he worried about quite a lot during the takeover of Twitter.

How are Twitter and all the other social media companies going to make it harder for these kind of accounts to be created? Because right now, the financial services industry is paying to clean up someone else's mess.

That was the Feedzai Weekly Update. Thanks for listening.