Page 16 - WAD 2023 March

LEVERAGING THE
FEATURE PRIVATE SECTOR TO

FIGHT FRAUD

APP FRAUD HITS RECORD HIGH

In 2022, there was a significant spike in both individuals and businesses falling victim to
advanced push payment (APP) fraud – when fraudsters pose as a genuine payee to trick
their victims into willingly making large, real-time bank transfers. I am in no doubt that
this upward trend will continue this year. Banks are simply not doing enough to catch the
cybercriminals and, as stated above, thinly stretched resources mean that few victims who
have reported their crimes to the authorities have had their cases successfully resolved.
Roger Bescoby
Director of Compliance Challenger banks have become particular targets for APP fraud, with the number of fraud
and Development, complaints against neobanks such as Monzo, Revolut, and Starling recently reaching a
Conflict International; three-year high . And this is before the Payment Systems Regulator’s planned mandatory
Board Director and UK Ambassador, reimbursement for APP fraud lands. Proving collusion between ‘victim’ and fraudster is
World Association of Detectives likely to become a recurring problem. From experience, I know that the private sector
already has at its disposal solutions and in-house skills to combat this.
The scale of financial fraud is reaching un-
precedented heights. Statistics from a recent As it stands, there is too much finger pointing between banks as to where the blame lies
report by the Victims’ Commissioner show that regarding APP fraud. Even simple tasks, such as inter-bank sharing of ‘errant’ customer
fraud and computer misuse yet again top the data currently stands at close to zero, perhaps for fear of this being taken as an admis-
list of recorded crimes in the UK . This comes sion of security failings. But action must be taken; at the very least, mandatory industry
at a time when the official institutions tasked standardization of referrals and customer onboarding would be beneficial.
with trying to stem this tide are struggling as
a result of underinvestment, insufficient man-
power, and the sheer volume of cases hitting
law enforcement desks every single day. A PROBLEM SHARED
My simple suggestion is to share the load, beginning with moving the most challenging
Financial crime accounts for approximately fraud cases to experts in the private sector which has the time, the experience, the ca-
40% of all current crimes in the UK. The Vic- pacity, and the ingenuity to tackle them. The private investigation sector is awash with
tims’ Commissioner report reveals that, de- tech-savvy talent, many of whom are technically trained ex-law enforcement officers, and
spite this, only 2% of policing power is currently also has the freedom to mount more intrusive investigation operations, including covert
dedicated to fighting this kind of fraud. Help surveillance. It can take months to set up a police-led surveillance operation and by the
is clearly needed, and engagement with the time all the regulatory hoops have been navigated, the trail has gone cold. Conversely, in
private sector is an obvious option. the private sector, action can start the very same day.

14 W.A.D Beyond Global