Ellen Berge published "Red Flags for
Banks and Processors Servicing the New High-Risk Environment"
in the February 2023 issue of The Review of Banking &
Financial Services. The following is an excerpt:
In February 2022, the Federal Trade Commission
("FTC") reported that consumers lost more than $5.8
billion to fraud in 2021, an increase of more than 70% over the
previous year. Imposter scams, online shopping scams, prize
promotions, sweepstakes, lotteries, Internet services, and business
and job opportunities, topped the list. In a separate study issued
in June 2022, the FTC reported that since the start of 2021, U.S.
consumers reported losing over $1 billion to crypto scams. Most of
the crypto scams originated with social media and primarily
involved bogus investment opportunities, with romance scams falling
in second place. While the FTC would caution consumers never to mix
dating and investment advice, it is not so simple for banks and
payment processors that
