FT News Briefing Should banks foot the bill for cyber scams?
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Dec 30, 2024 US credit card defaults are soaring, raising alarms about the economic impact on consumers. As scams increase, a heated debate emerges over whether banks or individuals should bear the financial losses from cyber fraud. In Syria, elections might be four years away, highlighting ongoing political instability. Meanwhile, Hitachi is pivoting from manufacturing to consultancy, leveraging AI and data monetization to transform its fortunes in the global market.
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Rise of Online Scams
- Online scams are rising due to social media and new technologies.
- Scammers are getting better at convincing people to give them money.
Social Engineering Scams
- Scammers use social engineering to trick people into willingly sending money.
- They often target grandparents by impersonating their grandchildren in emergencies.
Bank's Perspective on Scam Liability
- Banks argue that customers are responsible if they willingly transfer money to scammers.
- They see these scams as a digital equivalent of handing cash to someone.