Innovate Finance has published an anti-fraud strategy that plans to halve fraud in the UK by 2028.
Titled ‘A Technology Strategy to Smash Fraud’, the proposed plan outlines three key actions to tackle fraud: establish a National Anti-Fraud Centre, amend the Online Safety Act 2023, and develop and export new anti-fraud regulatory technology (RegTech) solutions.
Janine Hirt, CEO at Innovate Finance, highlighted the growing threat of fraud in the UK, stating that the nation ‘urgently needs a more collaborative approach’.
“This plan sets out how we can harness technology via data sharing to strengthen collaboration between industry and law enforcement. Current data sharing initiatives, while effective, operate in silos, which can make it difficult in practice,” she said.
“Critically, there is nothing in place with the critical mass or scale required to crush organised fraud. There is widespread agreement that establishing a National Anti Fraud Centre would be the appropriate vehicle to deliver this.”
Financial institutions have long called for enhanced data sharing, viewing it as crucial to preventing fraud. Last week, leading companies across payments, telecommunications and social media pledged to improve how fraud data is shared between sectors.
Innovate Finance’s plan aims to put these promises into practice by providing central leadership and ensuring access for firms of all sizes, moving beyond the previous focus on larger companies, as the organisation noted.
The Online Safety Act 2023 has also been a frequent point of criticism from the payments sector. As Innovate Finance highlights, the industry has consistently called for shared liability with social media platforms, where the majority of scams originate.
Without stating it directly, Innovate Finance’s proposed amendments to the Act appear to target a revamp of the Payment Systems Regulator’s (PSR) fraud reimbursement rules introduced last November.
Currently, these rules split reimbursement between the sending and receiving firms. The proposed changes would extend this responsibility to include social media and telecommunications companies..
Hirt continued: “We also need to update our laws, including the Online Safety Act 2023, to make tackling crime a shared responsibility between payment providers and the social media and telecommunications firms that allow fraud to take place on their platforms.”
Finally, Innovate Finance outlined how these measures could help revitalise the UK economy. With the RegTech sector projected to reach $246bn by 2032, it states there is an opportunity for the UK to build a world-leading anti-fraud technology sector.
Hirt concluded: “By acting now, the UK Government can lead the way in tackling fraud, protecting consumers and reinforcing its position as a global leader in secure and innovative finance.”
