The impact of these crimes are devastating on victims, with some experiencing significant emotional distress, a loss of trust, and long-term financial difficulties.

At UK Finance’s Economic Crime Congress on 30 March, we at Feedzai will be contributing to two panel discussions. The first will delve into the need for effective coordinated action by all sectors, including online platforms, telcos, regulators, and the financial services sector, to tackle the increased threat of both unauthorised fraud and authorised push payment scams (APP). The second will focus on the key fraud loss drivers of last year and the challenges facing us in 2023. This includes, soaring inflation and the cost-of-living crisis, which have historically shown that first party fraud is expected to spike. Financial vulnerability is also anticipated to increase leading to greater exposure to scams and mule incentives. incentives.

Below are a few topics that will be considered in our panel discussions:

• Wider responsibility and accountability - social media, search engines, and telcom providers all play a critical role in facilitating fraudulent contact with potential victims. What are the opportunities for successful collaboration and how can accountability be better shared across all sectors?
• Mules are in demand - as the volume of scams increase, the demand for mules to launder fraudulent funds increases too. Fraudsters continue to convince legitimate consumers to act as a mule in exchange for a fee. Unfortunately, most mules do not realise the severity of their actions; as Lloyds Banking Group recently warned, those complicit face up to 14 years imprisonment. How does the industry improve its mule detection capabilities whilst also providing the tailored education to those most vulnerable and at risk?
• Technology blueprints - most practitioners are aligned with the notion that a layered technology stack is critical for detecting scams. The industry has already invested in capabilities comprising of customer profiling, beneficiary risk, behavioural biometrics, machine learning and inbound payment monitoring. How else can industry align on a best practice blueprint for both detection and classification?
• Regulatory changes - the Payment Systems Regulator (PSR) recently called for enhanced consumer protection in the event of a scam. This includes a proposal for guaranteed refunds, as well a 50/50 percentage liability split between sending and receiving bank. How should banks prepare both analytically and operationally for these ground-breaking changes?
• Global peer comparisons - the world looks at the UK as a market leader when it comes to scam prevention and regulation. Countries like the US are already rumored to be considering a beneficiary-based liability model for Zelle scams. Similarly, Australians are also rallying for banks to bear more accountability for scam losses, but is this just a one-way street? What learnings can the UK take from other continents to further consolidate its place as global leader in protecting consumers?

We look forward to sharing our insight at these focused discussions on 30 March. If you’re attending the Economic Crime Congress and have an interest in these topics, please stop by one of the panel sessions or drop by the Feedzai booth for a chat. Alternatively, you can schedule a 1:1 session with us by reaching out to connect@feedzai.com