Cybercrime's surge has prompted several banks to explore innovative ways to prevent losses. A behavioral expert was recently brought on board by JPMorgan Chase.

Behind the Chase bank counter in Scarsdale's upscale neighborhood, north of Manhattan, two veteran tellers have collectively accumulated 47 years of experience. Karen Battista and Angela Castaldo possess an uncanny ability to recall personal milestones for their long-time customers, from recent vacations to new family additions and even pet losses.

On a chilly February afternoon, just as closing time approached, an elderly customer, 81 and recently bereaved, approached Ms. Battista's workstation. The woman requested assistance with transferring $9,000 into a newly opened account. As she inserted her debit card into the counter reader, Ms. Battista began searching for the new account under the woman's name but found no record of it existing.

A crucial detail emerged when the customer revealed what happened before entering the bank: a suspicious call had been received from Chase, according to her phone's caller ID. The caller inquired about three transactions totaling $3,000 via Zelle, which the customer claimed was unfamiliar territory for her.

A customer was redirected to "Michael," who claimed to be opening a secure account to shield her funds from potential scams. She would need to visit a physical branch to deposit $9,000 into this new account for added protection against fraudulent activity.

Ms. Battista scrutinized the information before requesting the new account number, which she promptly entered into the bank's database. A name associated with the account suddenly materialized on the screen. She paused momentarily, cautioning, "If you transfer funds to this unknown individual that will be the last of your money."

The customer hesitated, unsure if they should end the call abruptly.

Unbeknownst to Ms. Battista, a scammer named "Michael" had been secretly monitoring her phone calls, a common tactic employed by fraudsters who coach their marks through elaborate cons.

Ms. Battista swiftly intervened in a potentially disastrous situation, urging the customer to hang up and avoid a bank impersonation scam. Meanwhile, her colleague Ms. Castaldo helped thwart a significant loss of $22,000 at another branch.

Cybercrime victims often lack the protection of a trusted intermediary, leaving them vulnerable to scams. Despite having such safeguards in place, numerous individuals still fall prey to these schemes. The FBI's Internet Crime Complaint Center revealed a staggering $21 billion in losses for 2025, representing a significant increase of over 25 percent from the previous year and nearly five times the $4.4 billion reported in 2020. Unreported cybercrimes are likely to be substantial.

Across the nation, Scarsdale bankers and their colleagues are now taking on multifaceted responsibilities at teller windows and call centers. In this new capacity, they're often acting as investigators, mental health experts, and even fraud prevention specialists, protecting customers from financial losses.

Banks like JPMorgan Chase have traditionally allocated significant resources to combatting financial scams, but the rising tide of cybercrime has prompted many to boost their anti-fraud efforts or explore innovative approaches. The nation's largest bank is equipping its staff with skills to counter the psychological manipulation tactics used by scammers.

To combat scams more effectively, Chase has taken a proactive approach by studying the emotional and psychological tactics used by scammers. Approximately two years ago, the company brought in Elizabeth Huppert, an expert behavioral scientist, to lead research efforts. Since her arrival, she has overseen experiments with specialized teams tasked with interrupting scam attempts. These teams intervene when suspicious activity is detected, often based on data analysis or subtle cues exhibited by customers during interactions at branches.

Breaking news to customers about illusory investment returns can be a daunting task for these professionals. Meanwhile, scammers frequently form long-term bonds with their targets, typically cultivated over several months through carefully orchestrated interactions in foreign crime syndicate training camps.

Scammers can manipulate targets into an emotionally charged state, eerily similar to a trance-like condition. Researchers like Dr. Huppert are working on methods to disrupt these manipulative tactics and break the spell of deception.

To combat scams effectively, she analyzed customer interactions to grasp why people fall for scammers' narratives, frequently due to pre-existing distrust of their bank. The goal is to reorient these conversations by posing skeptical inquiries and planting seeds of doubt, ultimately influencing customer behavior in a positive way.

Dr. Huppert emphasizes the importance of skepticism, aiming to reduce faith in scammers and boost confidence in legitimate institutions, thereby instilling doubt about taking further actions.

Specialists in call centers conducted test calls to suspected victims of scams, aiming to validate their strategies. Initial results showed promise: By utilizing a newly created protocol, these specialists were able to minimize the number of scam transactions among their targeted customers. This was evident in instances where they prevented customers from reattempting previously canceled wire transfers to known scammers.

In 2023, Chase is piloting an innovative approach within its own branches, deploying experts to intercept suspected scams and protect vulnerable customers directly.

The branch manager now has immediate access to a dedicated pilot team, enabling them to intervene remotely and potentially prevent financial losses when scammers are involved.

Financial institutions like Chase and over 1,500 others are leveraging AARP's BankSafe Initiative, which includes a 30-minute training program. This interactive course is presented from the perspective of a bank employee, educating them on spotting suspicious activity and responding effectively.

Behind the scenes, banks scrutinize customer behavior using advanced software that detects anomalies in real-time. This might involve identifying unusual pauses when entering passwords or excessive backspacing during payee additions. Additionally, the banks can identify instances where customers share their screens with others or engage in simultaneous calls while making transactions.

Behavioral analysis can identify subtle cues indicating potential fraud, notes Sharell Barshishat, director of global advisory at BioCatch. These red flags may include unusual account activity that deviates from a user's typical behavior or displays signs of hesitation, duress, coercion, coaching and panic.

Behavioral red flags raised by customers during transactions are collected and analyzed by banks. This data is combined with other indicators, resulting in a risk assessment that informs the bank's response. If deemed necessary, the bank may suspend the transaction and contact the account holder for further review or clarification.

Longtime customers can be challenging to serve. After 26 years with Chase, associate banker Ms. Castaldo encountered a customer requesting an unusually large withdrawal of $15,000, exceeding his typical weekly amount of $500.

Valid reasons for customer behavior are often misunderstood by inexperienced staff, yet seasoned professionals use subtle cues to discern genuine from fabricated concerns in everyday interactions with clients.

Ms. Castaldo inquired about the transaction's purpose, to which the customer responded that it was for home repairs. Nearby, a banker observed the conversation and interjected, querying the customer about the status of the work and her satisfaction with its outcome.

The customer insisted on settling the debt immediately.

A woman departed with $15,000 in cash, only to have it vanish after being picked up by an Uber sent to her residence by scammers. Realizing her mistake immediately upon the driver's departure, she understood that a deceitful plan had been put into action.

A woman accompanied by her daughter visited the bank's local office to lodge a complaint about being swindled. Scammers had fabricated a story that her child was involved in an auto accident, pressuring her into making payments.

Associate bankers at the Scarsdale branch report a surge in various scams, a trend that's also evident across their operations overall.

Constant vigilance is essential in today's environment of heightened scam activity.

Despite heightened security measures, financial institutions alone cannot effectively combat this issue.

Erin West, a seasoned prosecutor and founder of Operation Shamrock, cautions against downplaying the severity of global cyber threats. The scale of losses due to scammers is staggering, yet it's viewed as an issue to be addressed by banks rather than a pressing economic concern for the US or worldwide economy.

A widow's $9,000 fortune remained intact due to her quick thinking. The scammer, posing as "Michael," attempted to dissuade her from visiting the bank where she was familiar with the tellers. He ominously suggested that it could be an inside job, according to recollections from the bankers involved in the case.

Despite her caution, she visited the tellers anyway, unaware of the potential risks. Her experience left a lasting sense of embarrassment, despite avoiding financial loss. The scammer's tactics were remarkably sophisticated, according to her account. To protect her anonymity, she chose not to reveal her identity publicly or share her story with family members.

She claimed it took place over several hours, leaving an indelible mark.

Cybercrime's surge has prompted several banks to explore innovative ways to prevent losses. A behavioral expert was recently brought on board by JPMorgan Chase. Behind the Chase bank counter in Scarsdale's upscale neighborhood, north of Manhattan, two veteran tellers have collectively accumulated 47 years of experience. Karen Battista and Angela Castaldo possess an uncanny ability to recall personal milestones for their long-time customers, from recent vacations to new family additions and even pet losses. On a chilly February afternoon, just as closing time approached, an elderly customer, 81 and recently bereaved, approached Ms. Battista's workstation. The woman requested assistance with transferring $9,000 into a newly opened account. As she inserted her debit card into the counter reader, Ms. Battista began searching for the new account under the woman's name but found no record of it existing. A crucial detail emerged when the customer revealed what happened before entering the bank: a suspicious call had been received from Chase, according to her phone's caller ID. The caller inquired about three transactions totaling $3,000 via Zelle, which the customer claimed was unfamiliar territory for her. A customer was redirected to "Michael," who claimed to be opening a secure account to shield her funds from potential scams. She would need to visit a physical branch to deposit $9,000 into this new account for added protection against fraudulent activity. Ms. Battista scrutinized the information before requesting the new account number, which she promptly entered into the bank's database. A name associated with the account suddenly materialized on the screen. She paused momentarily, cautioning, "If you transfer funds to this unknown individual that will be the last of your money." The customer hesitated, unsure if they should end the call abruptly. Unbeknownst to Ms. Battista, a scammer named "Michael" had been secretly monitoring her phone calls, a common tactic employed by fraudsters who coach their marks through elaborate cons. Ms. Battista swiftly intervened in a potentially disastrous situation, urging the customer to hang up and avoid a bank impersonation scam. Meanwhile, her colleague Ms. Castaldo helped thwart a significant loss of $22,000 at another branch. Cybercrime victims often lack the protection of a trusted intermediary, leaving them vulnerable to scams. Despite having such safeguards in place, numerous individuals still fall prey to these schemes. The FBI's Internet Crime Complaint Center revealed a staggering $21 billion in losses for 2025, representing a significant increase of over 25 percent from the previous year and nearly five times the $4.4 billion reported in 2020. Unreported cybercrimes are likely to be substantial. Across the nation, Scarsdale bankers and their colleagues are now taking on multifaceted responsibilities at teller windows and call centers. In this new capacity, they're often acting as investigators, mental health experts, and even fraud prevention specialists, protecting customers from financial losses. Banks like JPMorgan Chase have traditionally allocated significant resources to combatting financial scams, but the rising tide of cybercrime has prompted many to boost their anti-fraud efforts or explore innovative approaches. The nation's largest bank is equipping its staff with skills to counter the psychological manipulation tactics used by scammers. To combat scams more effectively, Chase has taken a proactive approach by studying the emotional and psychological tactics used by scammers. Approximately two years ago, the company brought in Elizabeth Huppert, an expert behavioral scientist, to lead research efforts. Since her arrival, she has overseen experiments with specialized teams tasked with interrupting scam attempts. These teams intervene when suspicious activity is detected, often based on data analysis or subtle cues exhibited by customers during interactions at branches. Breaking news to customers about illusory investment returns can be a daunting task for these professionals. Meanwhile, scammers frequently form long-term bonds with their targets, typically cultivated over several months through carefully orchestrated interactions in foreign crime syndicate training camps. Scammers can manipulate targets into an emotionally charged state, eerily similar to a trance-like condition. Researchers like Dr. Huppert are working on methods to disrupt these manipulative tactics and break the spell of deception. To combat scams effectively, she analyzed customer interactions to grasp why people fall for scammers' narratives, frequently due to pre-existing distrust of their bank. The goal is to reorient these conversations by posing skeptical inquiries and planting seeds of doubt, ultimately influencing customer behavior in a positive way. Dr. Huppert emphasizes the importance of skepticism, aiming to reduce faith in scammers and boost confidence in legitimate institutions, thereby instilling doubt about taking further actions. Specialists in call centers conducted test calls to suspected victims of scams, aiming to validate their strategies. Initial results showed promise: By utilizing a newly created protocol, these specialists were able to minimize the number of scam transactions among their targeted customers. This was evident in instances where they prevented customers from reattempting previously canceled wire transfers to known scammers. In 2023, Chase is piloting an innovative approach within its own branches, deploying experts to intercept suspected scams and protect vulnerable customers directly. The branch manager now has immediate access to a dedicated pilot team, enabling them to intervene remotely and potentially prevent financial losses when scammers are involved. Financial institutions like Chase and over 1,500 others are leveraging AARP's BankSafe Initiative, which includes a 30-minute training program. This interactive course is presented from the perspective of a bank employee, educating them on spotting suspicious activity and responding effectively. Behind the scenes, banks scrutinize customer behavior using advanced software that detects anomalies in real-time. This might involve identifying unusual pauses when entering passwords or excessive backspacing during payee additions. Additionally, the banks can identify instances where customers share their screens with others or engage in simultaneous calls while making transactions. Behavioral analysis can identify subtle cues indicating potential fraud, notes Sharell Barshishat, director of global advisory at BioCatch. These red flags may include unusual account activity that deviates from a user's typical behavior or displays signs of hesitation, duress, coercion, coaching and panic. Behavioral red flags raised by customers during transactions are collected and analyzed by banks. This data is combined with other indicators, resulting in a risk assessment that informs the bank's response. If deemed necessary, the bank may suspend the transaction and contact the account holder for further review or clarification. Longtime customers can be challenging to serve. After 26 years with Chase, associate banker Ms. Castaldo encountered a customer requesting an unusually large withdrawal of $15,000, exceeding his typical weekly amount of $500. Valid reasons for customer behavior are often misunderstood by inexperienced staff, yet seasoned professionals use subtle cues to discern genuine from fabricated concerns in everyday interactions with clients. Ms. Castaldo inquired about the transaction's purpose, to which the customer responded that it was for home repairs. Nearby, a banker observed the conversation and interjected, querying the customer about the status of the work and her satisfaction with its outcome. The customer insisted on settling the debt immediately. A woman departed with $15,000 in cash, only to have it vanish after being picked up by an Uber sent to her residence by scammers. Realizing her mistake immediately upon the driver's departure, she understood that a deceitful plan had been put into action. A woman accompanied by her daughter visited the bank's local office to lodge a complaint about being swindled. Scammers had fabricated a story that her child was involved in an auto accident, pressuring her into making payments. Associate bankers at the Scarsdale branch report a surge in various scams, a trend that's also evident across their operations overall. Constant vigilance is essential in today's environment of heightened scam activity. Despite heightened security measures, financial institutions alone cannot effectively combat this issue. Erin West, a seasoned prosecutor and founder of Operation Shamrock, cautions against downplaying the severity of global cyber threats. The scale of losses due to scammers is staggering, yet it's viewed as an issue to be addressed by banks rather than a pressing economic concern for the US or worldwide economy. A widow's $9,000 fortune remained intact due to her quick thinking. The scammer, posing as "Michael," attempted to dissuade her from visiting the bank where she was familiar with the tellers. He ominously suggested that it could be an inside job, according to recollections from the bankers involved in the case. Despite her caution, she visited the tellers anyway, unaware of the potential risks. Her experience left a lasting sense of embarrassment, despite avoiding financial loss. The scammer's tactics were remarkably sophisticated, according to her account. To protect her anonymity, she chose not to reveal her identity publicly or share her story with family members. She claimed it took place over several hours, leaving an indelible mark.

Billions are being lost to scammers with teller intervention.

The surge in AI-driven corporate debt issuance is contributing to a significant increase in the long-term Treasury supply, which in turn affects yields. According to Morgan Stanley, companies like Meta, Oracle, and their peers have collectively issued $250 billion in debt markets so far this year.

A surge in artificial intelligence is fueling a historic stock market rise, and its effects are now being felt elsewhere.

Technology giants like Meta Platforms, Oracle, and others have amassed a staggering $250 billion in global debt market funding this year, as revealed by Morgan Stanley's analysis, highlighting an unprecedented level of borrowing activity in recent times.

Analysts attribute the sharp increase in AI-related infrastructure investment as a contributing factor to the significant market downturn in May, which drove 30-year Treasury yields to their highest point since 2007, amidst concerns about inflation and shifting expectations for Federal Reserve policy adjustments. The subsequent decline in yields has been modest, with rates still hovering above year-start levels, influenced by the substantial bond offerings that have taken place.

Capex spending is projected to reach unprecedented levels, with annualized outlays totaling $750 billion and rising to nearly $850 billion by next year. According to Thomas Urano of Sage Advisory in Austin, this surge bears resemblance to a massive federal stimulus package or infrastructure investment.

Meta Platforms giants like Meta Platforms,Oracle, and others have amassed a staggering $250 billion in global debt market funding this year, as revealed by Morgan Stanley's analysis, highlighting an unprecedented level of borrowing activity in recent times.

Artificial Intelligence Takes Center Stage.

Investors warn that corporate debt taken on to fund AI initiatives may significantly impact Treasury valuations going forward.

Data center investments by hyperscalers are being fueled by significant funding commitments, allowing for long-term financial planning benefits, as evidenced by Alphabet's recent $80 billion stock sale announcement, which highlights diverse fundraising avenues available to these companies.

Artificial intelligence components have relatively short lifespans, typically requiring replacement every few years, whereas the underlying infrastructure, such as buildings and land, can remain functional for up to three decades. This disparity creates a compelling case for securing long-term financing at fixed rates.

The Federal Reserve Bank of Dallas notes that Oracle has undergone significant transformation from being a relatively minor issuer of long-term debt to becoming one of the largest providers of duration risk in the investment-grade market. This shift is particularly notable as it affects interest-rate exposure, a key metric closely monitored by investors such as insurance companies.

According to Ramaswamy, approximately 15% of overall Treasury issuance is comprised of AI-related securities, an impressive figure indeed.

Investors are now paying a significantly higher premium for Oracle's five-year credit default swap, which has skyrocketed to 150 basis points over the past year, up from approximately 30 basis points. This dramatic increase reflects growing unease about the company's substantial debt accumulation.

Large tech companies' long-term borrowing has skyrocketed, but actual figures might be even more substantial due to institutional constraints. Institutional investors are restricted by internal rules governing the amount of debt they can hold from a single company and its duration, according to Ramaswamy. Private lenders generally favor floating rate loans over fixed rates.

Technology borrowers can create shorter-dated or floating-rate debt and subsequently hedge it with interest-rate swaps for more stable long-term financing arrangements.

According to Ramaswamy's analysis, a staggering $50 billion worth of long-term borrowing was facilitated through these swaps during the fourth quarter, with the actual total likely even greater currently.

In the past twelve months, the Treasury issued $540 billion in ten-year notes.

The Treasury market's current downturn is not solely driven by the Federal Reserve's actions or inflation concerns. Real yields, adjusted for expected inflation rates, reveal a more nuanced picture.

According to Jonathan Hill, head of U.S. inflation market strategy at Barclays, long-term inflation fears often trigger a significant surge in expectations.

In recent times, bond returns have surged as investors' inflation concerns remain remarkably stable - a trend that aligns with the notion of an AI-fueled investment surge driving up capital requirements currently, potentially leading to increased efficiency and reduced inflation in the long run.

Government borrowing on a large scale is fueling this shift in the market. Rising interest rates increase debt repayment expenses, which necessitates increased bond sales, potentially further elevating interest rates, according to Hill.

The rise of AI borrowing isn't yet the driving force behind Treasury dynamics. However Fed decisions, inflation trends, and fiscal shortfalls remain paramount. Meanwhile, the surge in AI infrastructure development introduces a fresh source of supply into an already saturated market, which is struggling to accommodate excessive government debt issuance.

Hill emphasized that the borrowing trends are striking, with significant implications unfolding quietly in the financial sector.

The surge in AI-driven corporate debt issuance is contributing to a significant increase in the long-term Treasury supply, which in turn affects yields. According to Morgan Stanley, companies like Meta, Oracle, and their peers have collectively issued $250 billion in debt markets so far this year. A surge in artificial intelligence is fueling a historic stock market rise, and its effects are now being felt elsewhere. Technology giants like Meta Platforms, Oracle, and others have amassed a staggering $250 billion in global debt market funding this year, as revealed by Morgan Stanley's analysis, highlighting an unprecedented level of borrowing activity in recent times. Analysts attribute the sharp increase in AI-related infrastructure investment as a contributing factor to the significant market downturn in May, which drove 30-year Treasury yields to their highest point since 2007, amidst concerns about inflation and shifting expectations for Federal Reserve policy adjustments. The subsequent decline in yields has been modest, with rates still hovering above year-start levels, influenced by the substantial bond offerings that have taken place. Capex spending is projected to reach unprecedented levels, with annualized outlays totaling $750 billion and rising to nearly $850 billion by next year. According to Thomas Urano of Sage Advisory in Austin, this surge bears resemblance to a massive federal stimulus package or infrastructure investment. Meta Platforms giants like Meta Platforms,Oracle, and others have amassed a staggering $250 billion in global debt market funding this year, as revealed by Morgan Stanley's analysis, highlighting an unprecedented level of borrowing activity in recent times. Investors warn that corporate debt taken on to fund AI initiatives may significantly impact Treasury valuations going forward. Data center investments by hyperscalers are being fueled by significant funding commitments, allowing for long-term financial planning benefits, as evidenced by Alphabet's recent $80 billion stock sale announcement, which highlights diverse fundraising avenues available to these companies. Artificial intelligence components have relatively short lifespans, typically requiring replacement every few years, whereas the underlying infrastructure, such as buildings and land, can remain functional for up to three decades. This disparity creates a compelling case for securing long-term financing at fixed rates. The Federal Reserve Bank of Dallas notes that Oracle has undergone significant transformation from being a relatively minor issuer of long-term debt to becoming one of the largest providers of duration risk in the investment-grade market. This shift is particularly notable as it affects interest-rate exposure, a key metric closely monitored by investors such as insurance companies. According to Ramaswamy, approximately 15% of overall Treasury issuance is comprised of AI-related securities, an impressive figure indeed. Investors are now paying a significantly higher premium for Oracle's five-year credit default swap, which has skyrocketed to 150 basis points over the past year, up from approximately 30 basis points. This dramatic increase reflects growing unease about the company's substantial debt accumulation. Large tech companies' long-term borrowing has skyrocketed, but actual figures might be even more substantial due to institutional constraints. Institutional investors are restricted by internal rules governing the amount of debt they can hold from a single company and its duration, according to Ramaswamy. Private lenders generally favor floating rate loans over fixed rates. Technology borrowers can create shorter-dated or floating-rate debt and subsequently hedge it with interest-rate swaps for more stable long-term financing arrangements. According to Ramaswamy's analysis, a staggering $50 billion worth of long-term borrowing was facilitated through these swaps during the fourth quarter, with the actual total likely even greater currently. In the past twelve months, the Treasury issued $540 billion in ten-year notes. The Treasury market's current downturn is not solely driven by the Federal Reserve's actions or inflation concerns. Real yields, adjusted for expected inflation rates, reveal a more nuanced picture. According to Jonathan Hill, head of U.S. inflation market strategy at Barclays, long-term inflation fears often trigger a significant surge in expectations. In recent times, bond returns have surged as investors' inflation concerns remain remarkably stable - a trend that aligns with the notion of an AI-fueled investment surge driving up capital requirements currently, potentially leading to increased efficiency and reduced inflation in the long run. Government borrowing on a large scale is fueling this shift in the market. Rising interest rates increase debt repayment expenses, which necessitates increased bond sales, potentially further elevating interest rates, according to Hill. The rise of AI borrowing isn't yet the driving force behind Treasury dynamics. However Fed decisions, inflation trends, and fiscal shortfalls remain paramount. Meanwhile, the surge in AI infrastructure development introduces a fresh source of supply into an already saturated market, which is struggling to accommodate excessive government debt issuance. Hill emphasized that the borrowing trends are striking, with significant implications unfolding quietly in the financial sector.

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