Counter-fraud

The UK continues to see staggering levels of fraud, with Ofcom research indicating that almost 9 out of ten online adults (nearly 43 million people) have encountered suspected scams. With fraud accounting for over 40% of crime, and having a significant impact not only on those individuals or businesses who fall victim, but also on the UK's financial reputation and our national and economic security, it is a critical issue for the new government to address. This article explores the Labour government's proposed strategy to combat fraud and the potential implications for various sectors.

Tackling fraud: the Labour Government's strategy (mishcon.com)

Protect officers have been encouraging the public to “think scams” after teaming up with a host of garden centres to help tackle fraud.

Criminals worldwide are tricking millions of people into parting with vast sums every year through a variety of cunning scams.

Fraud is a tale as old as time, but its guises evolve with the ages. Let’s have a look into some of the most notable frauds and understand the psychological underpinnings that make them so effective.

The Nigerian Prince Story was pretty obvious right?

“Send me your bank details so I can send you money,” said the elusive Nigerian prince. It sounds absurd, yet this scam has defrauded victims of a staggering $4.5 billion.

According to a survey conducted by LexisNexis Risk Solutions on digital trust, banking is the most trusted sector, with 86% of UK consumers deeming banks trustworthy.

However, only 28% of consumers deem government institutions trustworthy. So, how can the government support the national fight against fraud?

The Chartered Trading Standards Institute (CTSI) is proud to be the first signatory of the new National Trading Standards (NTS) Scams Team’s ‘Fraud and Scams Victim Charter’. This is another milestone in the work of both CTSI and NTS to support and inform consumers with regards to the scams and frauds they may experience.

The Charter will support victims of frauds and scams; it explains the standard of service that victims of these crimes can expect and from organisations who sign up to the Charter. This includes commitment to not blame or shame victims but to show empathy, understanding and compassion, and reminds us of how we should treat all victims of crime, but with a focus on fraud and scams.

Every business in the world has one thing in common—the need to accept payments for their services or goods. However, it’s never as simple as it sounds, especially when you consider the role fraud plays. Global losses from online payment fraud are projected to soar past $362 billion in the next five years. In the UK alone, businesses took a hit of over £173.8 million in the first half of 2023 due to card-not-present fraud.

https://www.msn.com/en-gb/money/other/why-fraud-prevention-strategies-are-backfiring-for-businesses/ar-BB1oEnvJ

Fraud currently accounts for around 38 percent of total crime in England and Wales, and it cost the UK £2.46 billion in FY 21/22. Instances of Fraud have continued to grow in recent years, representing a huge proportion of criminal activity that is costing the UK economy dearly.

Backed by international criminal enterprises, fraud can take many forms, from individual romance scams to defrauding public funds. Its scale and pervasiveness represent both a reputational and fiscal risk to government agencies and departments.

https://www.thinkdigitalpartners.com/news/2024/05/13/how-can-the-uk-government-tackle-the-increasing-threat-of-fraud/?utm_campaign=shareaholic&utm_medium=twitter&utm_source=socialnetwork

Fraud remains England and Wales' most common crime, and last year victims lost over £1bn. To fight back, Which? believes the next government has both an opportunity and an obligation to make tackling fraud a national priority.

https://www.politicshome.com/members/article/next-government-make-fraud-national-priority

The contemporary banking system operates in a dynamic and interconnected global landscape. While this presents vast opportunities, it also introduces novel challenges to financial security. According to a report by Deloitte’s Center for Financial Services, generative AI could drive fraud losses in the United States to an estimated $40 billion by 2027, up from $12.3 billion in 2023. This represents a compound annual growth rate of 32%.

https://www.finextra.com/blogposting/26318/beyond-borders-beyond-fraud-securing-the-future-of-finance

Firms in the financial services industry “need to have a whistleblowing policy in place” to combat fraud effectively, Medius CEO, Emma Brown, has argued.

Brown, who is responsible for putting in place whistleblower policies and making sure they are effective, explained that, while every industry can be susceptible to fraud, financial services are particularly at risk due to their nature as “a lot of money is changing hands”.