Business

EU Banks Leave Billions of Euros Unrecovered Every Year

There are billions of mysterious frauds that have occurred online that remain unsolved. Quite frankly banks do not have the time or resources to follow up on every reported case of fraud online. Most banks won’t even investigate fraud if it is under €15,000. Why do the banks leave billions of Euros without so much as a minor investigation every year?

Most of the time the banks can get their money back from the vendor by reversing transactions, but there are obviously plenty of cases where a reverse transaction does not work. These frauds in which the transaction cannot be reversed cost banks in the EU billions of Euros every year.

Sometimes the person’s whose account the fraud was made will only receive a partial refund. It really depends on how the money was taken from that person’s bank account.

In most fraudulent cases that involved identity theft, the person’s account that has been affected was usually because the individual involved uses public WiFi networks without using a VPN.

A survey in Spain looked into just how many people had experienced some form of identity theft and financial fraud to answer a hypothesis on why people that answer yes may have been targets.

The question was: “Do the majority of the people that suffer from identity fraud connect to public WiFi?

as to why so many people are experiencing identity theft issues showed that more than 89% of the people have connected to public WiFi systems more than once per week. Out of that 89%, only 2.5% claimed to use VPN software.

After the question regarding a VPN, the survey asked Que es vpn? To find out if anyone in the survey knew what a VPN is. This question applied to all groups regardless of whether they used a VPN or not.

Firstly, this question applies to the group that uses a VPN just confirm they know what a VPN is and qualifies their ‘Yes’ answer to claiming to be using a VPN when connecting to public WiFi networks.

Secondly, the survey wanted to pick out if people that knew what VPNs are would still be willing to connect to a public network despite not having one.

The results of the survey were surprising. Around 29% of those that answered ‘no’ to experiencing financial fraud used VPN software when connecting to public WiFi networks even in their local bar. Another 62% claimed never to connect to public WiFi networks while 9% regularly or sometimes connect to public WiFi networks and either did not know what a VPN is or just don’t bother to use one.

Now if you take the results from this survey, those that have suffered financial fraud and/or identity theft appear to show a correlation with the fact that they do connect to public WiFi systems. On the other hand, those that use VPNs or do not connect to public WiFi appear to be avoiding any kind of financial fraud.

The survey does not go into much detail about how fair it was and where there could be bias made via the line of questioning, but for all it is worth, it gives us at least some insight as to possibly why identity theft is rife.

It also makes sense that the majority of those that have experienced a financial fraud would be regular users of public WiFi networks because it these networks that are a prime hunting ground for internet fraudsters looking to steal your data and profit from it.

From this, we can conclude that EU banks probably already know this and there no use fighting against it. However, it does beg the question as to why so many people do not know what a VPN is. Shouldn’t the banks try to save some of those billion being lost by educating their customers to use VPN software while connected to public WiFi networks?