UK Unveils New Fraud Strategy to “Tackle Fraud at its Source.”
May 10, 2023
When technology rises up to customers’ demands, it is immediately studied and weaponized by fraudsters looking to make a quick buck.
In fact, fraud accounts for 40% of all crime in the UK, and it costs people a whopping £7 billion per year. As a result, the government unveiled plans to “take the fight” against scammers, plans that were met with mixed reactions.
Rishi Sunak unveiled the ‘National Fraud Squad’, an organization led by the National Crime Agency in conjunction with the City of London Police, which promises to put 400 new specialist investigators to work cracking down on crime, and “tackle fraud at its source.”
In addition, the government has announced plans to work closely with international partners to extend the fight overseas.
Ofcom will come on board to reduce the number of spoofing cases, where fraudsters impersonate banks or other legitimate businesses in order to trick people out of their money or important passwords.
It was also announced that £30 million will be invested into a reporting centre, and that technology companies will assist to make it easier for victims to report fraud online.
Another measure is giving banks more time to process payments in order to allow them to investigate further suspicious payments.
According to Nick Kerpe, head of customer relations at FCA- regulated authorized payment institution, Moevium, this move by the government is “very much a welcome one.”
Zoe Newman, regional managing director, EMEA and global co-head of the Financial Investigations practice at risk and financial advisory solution provider, Kroll, said the government’s new proposal is ‘significant’, and if it were to succeed, relations with international agencies would need to form quickly.
Colum Lyons, CEO of ID-Pal, said it will take more than a policy change, and we could reap the benefits of AI-powered fraud prevention.
Fraudsters are getting bolder by the day, and it is imperative for governments around the globe to tackle the issue at its source. Hopefully the new resources will make a difference in the fight against fraud, prompting agencies around the world to follow in the UK’s footsteps.