Common Wealth Bank Text Message Scam†MyAssignmenthelp.com

Question: Discuss about theCommon Wealth Bank Text Message Scam. Answer: Introduction Common wealth Bank of Australia has in the recent years been faced with test message scam that is predicted to increase in the next decade. Text message scams are complicated messages that appear to be real or like the standard message from the bank that manipulates a customer to undertake a certain decision (Kilk, 2007). The text message scams are sent to the client mobile phone by a fraudster whose aim is steal money from the accounts. The text message on the clients phone come on the same number and thread as if genuinely sent by the bank. Fraudsters are criminals who aim to steal from customers by using misleading information. The text messages scam fraudsters are facilitated by advanced informational technologies that enable them access information (Ramsey, Bapna, 2016). The IT has also enabled fraudsters to create false that can be socially acceptable and commit consumer financial fraud. The advancement in technology and free transfer of knowledge has continually led to frauds ters hiring specialist to exploit uncovered knowledge to creating tactics to commit crime through technology. The dynamism of globalization has also contributed to increased bank fraudsters who are able to operate in new ways to match global technological criminal trends. Globalization is the integration of the world economy as a result of reduced barriers and advanced technology (Nikiforova, W. Gregory, 2013). The world has been interconnected to be a global village. Information technologies has enables people around the globe to interact freely through the internet and telephone calls and messages to transact businesses. Dynamism of globalization refers to the positive and negative impacts of globalization. Positive dynamism of globalization is benefits that organizations get from the interconnection and integration of the world community. These include access to information, large customer base, and access to variety of products and services and resources. Negative dynamism of g lobalization is demerits that organizational and people face as a result of integrated economics and integration of the global community. These include cyber crime, hoax emails, scam information, computer virus, and national security (Chambers-Jones, 2012). The following executive report will assess the impact and identify critical issues arising as a result of scam text messages in the Common Wealth Bank. The situation will be addressed in globalization contextual. The report will also recommend appropriate measures to the Company management to ensure the organizational performance is not negatively affected. Impact of Text Messages Scam on Common Wealth Bank The text messages scam have an impact both to Common Wealth Bank as an organization and the global customers it offers it services to. The following are the impacts of text messages scam; First, the scam messages fraud banks customers. The scam text messages manipulate customers to think in a certain way making wrong decisions about their accounts. The fraudsters ask for customers usernames, passwords and secrets codes. These details are used transfers money from the victims account to another anonymous account. The fraudsters are able to transfer money without being noticed and cannot be noticed. This is as a result of globalization where they can be located anywhere around the globe. Globalization has also integrated the banking system and the fraudsters can easily transfer money from the victims account to another bank without limitations or questioning (Manjusha Goel, 2012). The fraudsters also have ability to hide their identity or use robots to avoid being arrested. This lead to customers money being stolen from their bank accounts. Secondly, text message scam lead to customer losing confidence with the bank. Customers feel frustrated with fraudster messages that mislead them. Customers fear to lose their money while on their banks account. The loss of confidence in banks ability to secure their money leads to massive transfer to other banks that can guarantee customer confidence (Hollow, 2014). Customers are able to access many banks for both current and saving accounts around the globe. Globalizations allow customers to transfer and open account with different banks around the globe. The customers will choose to bank with institutions that can safeguard their money away from fraudsters. This will lead to bank liquidity decreasing. Third, text messages scam can con the bank accounts leading to bankruptcy of the bank and members. Scam messages can transfer adequate amount from the customers accounts leading to bankruptcy of the customers and consequently the whole bank (Gupta, Sharman, 2009). This can happen when the fraudsters are able to anonymously transfers adequate amount of fund to other national or international accounts emptying the banks accounts. This situation can lead to customers of the bank being declared bankrupt and subsequently the bank. Another impact of text message scam is ruining the reputation of the bank. The scam messages lead to conning of customers and bankruptcy that ruin the banks reputation. Existing customers start opening accounts elsewhere to safeguard their money. Potential customers also fail to open accounts with the bank. The bank bad reputation is easily ruined around the globe. With the advancement in information technology, people in different geographical locations get the news about the bank and result in avoiding it services (Khrais, 2015). The banks reputation that has been established for many years is ruined within days due to global interactions. Lastly, the text message scam can change customers attitude to banking technology. Banking technology is an important tool to delivering quality services to customers. The customers experiencing test scam can change their attitude due to past experience of being conned. This leads to customers changing their attitude towards banking technology and failing to adopt new advancements or updates to enhance the banking services. The customers stop trusting messages sent by the bank making communication between the bank and the customers difficult. Critical Issues of Text Messages Scam Scam messages lead to critical issues in the organizations. The critical issues on common Wealth Bank as a result of text messages scam are as follows; First, the text messages scam are capable of losing the banks customers. The text message scam ruined the banks reputations and lowered the level of customers confidence. Customers feel that there is general incapability of the bank to secure their money and there can opt to leave the institution to another bank perceived safer (Behr, Gttler, 2008). Loss of customer is a critical issue to the development and growth of the institution. Loss of customers also is likely to reduce the returns to the owners of the banks. Secondly, the bank profits are likely to reduce. The impact of the fraud in the customers account is likely to reduce customers activities on their account (Bakare, 2015). This is as a result of loss of confidence and trust with the information technology system of the bank. This means that customers will avoid transacting through their online accounts. This will lead to reduced services that the bank will be offering to its customers. This factor will reduce the profits that the Bank has been getting leading to reduced return to the shareholders. The bank will also be unable to finance it projects and settle its obligations as they fall due. Third, the bank will face possible prosecution by the authority. The bank is likely to be sued for its inability to safeguard the clients account and ensure effective communication. The bank has a duty of care of protecting customers money and ensuring credibility of the information disseminated to custo0mers regarding their accounts. It the responsibility of the bank to ensuring customers money is secure for the duration deposited to withdraw. Therefore, the, the customers holding accounts in the bank who have be fraud by fraudsters will sue the institution demanding refund or explanation about their loss. The bank can also be suspended from the global interconnections that it is engaged on (Ghosh, 2016). This situation will put the bank in a compromising situation whose consequences can be adverse. Fourth the banks customers can develop resistance to future changes or advancement in technology. The text message scam can lead to clients of the bank developing phobia about the IT system on the basis of inability to safeguard their funds. This entails that they will not cooperate in adopting future developments that the bank is pursuing to ensuring quality banking serirve delivery. This means that the business will have to invest more resources to institute changes when need be. Another critical issue as a result of text message scam on Common Wealth Bank is closure of the bank. Fraud to customers, loss of reputation, low profits, and bankruptcy can lead to the organizations being closed down. This closure would be as a result of general inability to safeguard stakeholders interests. This is the extreme case of the scam occurring on the institution. Recommendation to Enhance Organizational Performance From the analysis of the text message scam impact and critical issues on Common Wealth Bank, we recommend the following; First, the Bank should establish a monitoring system. Establishing a monitoring system will offer surveillance of the banks IT system. The surveillance will ensure the suspicious actions are detected and reported. The bank will also be able to keep track of the individuals historical transactions and act on urgency in case there are suspicious activities on an individual account or group (Silva, 2008). Secondly, the Bank should continuously update the IT system to accommodate new developments. Updating system will incorporate new knowledge in software applications development to enhance security of the information stored in the system. The fraudsters will not be able to use new knowledge and skills to take advantage of the Banks IT system to leak information to manipulate customers. Updating the IT system will also enable the bank restore and guarantee customers confidence of the banking system to safeguard their wealth. Third the bank should create awareness about the fraudster practices in the banking sector. The Bank should invest in educating it customers about the fraudsters tricks to fraud their account. Impacting customers with knowledge about fraudsters will enable them to protect their important details that are target by criminals. This awareness will also enable the customers report fraudsters to the bank and the authority for further action. Lastly, the Bank should integrate it communication and activities with other banks to fight crime against customer fraud. The bank should stand by defining and availing contacts that are to be used to communicate with customers when need be. The telephone numbers should be complimented by an email to. This will ensure verification of the communication and the message intended. The Bank should also interconnect it system with other institutions in the banking sector to track, fight, and eradicate fraudster around the globe (Tsai, 2016). This will ensure fraudsters are tamed or the money stolen can be retrieved and returned to customers. Conclusion Text messages scam can affect the organizational performance if not addressed. They have several impacts to customers and the institution in global context. Text scams cause conning of money that are anonymous, loss of confidence from the service provided and customers shifting from the bank. Text messages scam also cause bankruptcy of both customers and the bank leading to loss institution reputation. Text messages lead to the Bank losing it customers, decline in profitability, possible prosecution, and likely closure of the bank. Following assessment of impacts and identification of critical issue in Common Wealth Bank text message scam, we have recommended that the Bank should monitor, create awareness to customers, update IT system and interconnect it system in order to avoid customer being fraud and enhance organizational performance. Therefore, the Bank should adopt the recommendations of this report to reduce scam impact and avoid critical issues that can lead to organizationa l failure. References Bakare, S. (2015). Varying Impacts of Electronic Banking on the Banking Industry. The Journal Of Internet Banking And Commerce, 20(2). https://dx.doi.org/10.4172/1204-5357.1000111 Behr, P., Gttler, A. (2008). The informational content of unsolicited ratings. Journal Of Banking Finance, 32(4), 587-599. https://dx.doi.org/10.1016/j.jbankfin.2007.04.021 Chambers-Jones, C. (2012). Virtual economies and financial crime (1st ed.). Cheltenham: Edward Elgar Publishing. Ghosh, A. (2016). 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