The Last Line of Defense - Stopping Fraud in the Moment

 

Fraud and scams don’t happen all at once. They build over time across text messages, calls, and digital interactions, often leading to a single critical moment when money is about to move.

That moment matters.

At Capital One, protecting customers means not only helping them avoid scams earlier in the process, but also stepping in at critical points to stop fraud before it’s too late. That’s where being the “last line of defense” comes into focus.

We sat down with Chad Miller from our Fraud Strategy and Analysis team to talk about what that responsibility looks like in practice, how scams are evolving, and what it takes to protect customers in real time.

My team is made up of analysts and investigators, and our job is to protect customers from both fraud and scams — especially in the moments that matter most.

That means protecting against unauthorized transactions — where someone is accessing an account — but also scams, where a customer is being deceived into sending money themselves.

We do that in a few ways. We work closely with product teams to build protections directly into the customer experience, and we partner with data science teams to develop models that detect and triage suspicious activity. And we coordinate with operations teams to make sure that when something does happen, we respond quickly and support customers effectively.

It’s a combination of technology, data, and human judgment, all working together to reduce risk and protect customers.

Scammers are increasingly operating like sophisticated businesses–. testing new approaches, looking for ways around controls, and sharing tactics to scale their efforts.  In many cases, these aren’t isolated actors, they’re coordinated networks. Technology is making that easier. With advances in AI, the barrier to entry is lower than it used to be, which means more people can attempt these types of schemes.

But what we’re really seeing day to day is how effective social engineering has become. Scammers are getting better at convincing people to take actions that bypass protections.

For example, we’ve seen situations where someone is told to cut up their card and leave it in their mailbox, only for a scammer to send someone to pick it up and use it. It’s incredibly brazen and it shows how far these tactics can go.

It means that when money is about to move, we do everything we can to step in to stop it — before it’s too late. 

By that point, a scammer may have spent days, weeks, sometimes longer, building trust, creating pressure and urgency. The customer is often in a difficult, high-stress moment — making this one of the most critical intervention points

Our role is to step in at that critical point and make sure everything checks out before the transaction goes through.

We use a combination of data-driven models, real-time monitoring, and human review to identify high-risk activity. In some cases, that means pausing a transaction or asking additional questions to better understand what’s happening.

There’s a mindset that comes with this role. We often talk about it internally as making sure that financial criminals have to come through us to get to our customers. It’s a serious responsibility, and we treat it that way.

A common example is when we see a high-risk wire transfer that appears tied to a scam — like a customer being pressured to send money urgently

Nearly every week, we’re disrupting a six-figure wire scam. In many of those cases, that’s someone’s life savings, and once that money leaves, it can be very difficult to recover.

That’s why we invest in human review for higher-risk transactions. Our teams will get on the phone with customers, ask questions, and take the time to understand what’s really happening.

Those conversations can make all the difference by helping someone pause, reconsider, and avoid a loss that could have been devastating.

Our leadership often talks about the “grandmother rule”— treating customers the way you’d want your own family to be treated. That mindset shapes everything we do. First, we invest in education by helping customers understand common scams and what to look for. Then, in the moment, we provide prompts and warnings to help them make informed decisions.

Behind the scenes, we’re using detection systems to identify and stop suspicious activity. And if a customer does fall victim, we work to recover funds where possible and help them understand what happened.

It’s important that we show up the right way in those moments. This is often a stressful experience, and how we support customers matters just as much as the technology we use.

The biggest thing I would say is: if you didn’t initiate the interaction, be skeptical.

If someone reaches out to you, whether it’s a call, text, or message, take a step back and verify it through a channel you trust. Call the number on the back of your card. Log into your account directly. Don’t rely on the information that’s being given to you at that moment–verify it independently.

And when you’re sending money, especially to someone new, take the extra step to confirm it’s really them. Even something simple like sending a small amount first and verifying it can help.

What motivates me is knowing what’s at stake.

We’re dealing with people’s money, their savings, and their sense of security. That’s not something we take lightly.

At the same time, I’m encouraged by the progress we’re making. With the right combination of technology, real-time monitoring and intervention, and strong collaboration, we’re stopping more scams before they result in loss. There’s still more to do, but we’re committed to continuing to improve and to doing everything we can to protect our customers.