It might not be enough for financial institutions to invest heavily to upgrade their technology and educate their customers to combat fraud. 

The financial fraud detection and prevention market is projected to reach $27.27 billion in 2025, up from $24.31 billion 2024, according to ResearchandMarkets report this month, which noted that the market is projected to reach $42.6 billion by 2029.

But even with this investment in fraud detection tools being made, risk remains. 

John Mays, card services manager at the $450 million MidSouth Community Federal Credit Union, told Bank Automation News, adding that fraud prevention goes beyond the tech and requires consumer education.  

“There’s been a big question about, do we allow the members to compromise themselves by letting them set passwords that they give away?” he said. “We take a lot of time and effort to build a lock, and consumers give away the key.” 

Addressing breaches 

Last month, some 16 billion login credentials for Apple, Google, Telegram and Meta were exposed, Cybernews reported June 18. 

The data breach was one of the biggest in history, Siri Varma Vegiraju, technical leader at Microsoft Azure, told BAN.  

“What [tech giants] can do is provide more cybersecurity knowledge” along with implementing newer security protocols, such as biometric solutions or multifactor authentication, he added. 

Installing multifactor authentication allows organizations to safeguard consumers, even if their data has been breached, Vegiraju said.  

“Even if the password is breached, cybercriminals will still need to authenticate from a consumer’s device to access data, which is another friction point to stop breaches,” he said. 

Google, for one, is urging consumers “to adopt more secure, password-less authentication methods like passkey,” a company spokesperson told BAN. The tech giant denied that the June 18 breach stemmed from a Google data failure.  

Financial services organizations are looking toward installing more secure login systems, Vegiraju said. These include: 

• Biometrics; 

• QR codes; 

• Passkeys. 

The $5 billion Travis Credit Union, for example, is implementing biometric fraud-detection tools and fraud education for customers, Kirsten Miller, information security officer at the credit union, told BAN.  

The credit union joins ANZ Bank, Bank of America and Capital One, which are already investing in password-less capabilities.  

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