Scams and mule accounts a dominant fraud concern

Data silos hinder many banks’ responses, FICO survey finds

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Scams and mule accounts have become the dominant threat facing banks across Asia Pacific, according to a new survey by the multinational credit data analytics software company FICO.

Seven in 10 (69%) senior banking executives identified these forms of criminal activity as their greatest concern, reflecting the continued rise of scams in which victims are tricked into sending money directly to criminals.

Unlike traditional fraud, which typically involves unauthorised transactions that banks can detect and block, scams often bypass existing defences because payments are authorised by the victim. Once the money is sent, criminals rely on mule accounts to quickly move funds across institutions and borders, making recovery extremely difficult.