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From fintechs to major financial institutions – we all have a role to play in the fight against fraud

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At this time of year many of us will buy food to pick up gifts for loved ones and to entertain families and friends over the Christmas season

Expenses always add up around the holidays and in the digital age it’s never been easier to part with your cash with the tap of a card or quickly enter your bank details online.

But it’s also easy to forget how quickly we can simultaneously share our financial information. Recent research from Lloyds Bank suggests supply chain issues and people’s buying habits could make them more vulnerable to fraud this year. They found that the lack of in-demand gifts means nearly two-thirds (63%) of people in the UK are now taking more risks when shopping in the run-up to Christmas.

While it is important for consumers to recognize the telltale signs of fraud, the financial industry must also always be one step ahead. Despite the industry preventing £1.4 billion in unauthorized fraud by 2021, criminals will still deliver consumers £1.3 billion in authorized and unauthorized fraud, according to UK Finance.

This is a particular problem for the UK, which has been named card fraud capital of Europe by the Social Market Foundation, with the highest number of victims and highest losses per 1,000 people.

It’s no surprise that CRIF’s own research found that people in the UK are now the most hesitant to share their financial information with their bank in Europe, as it could make them more vulnerable to fraud. Kan two-thirds (67%) of UK consumers thought so too, well ahead of Italy (58%) and France (56%), who were second highest.

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This is worrying – not only in terms of fraud risk, but also in terms of people’s attitudes towards their financial services providers. Rather than seeing them as institutions they can trust with their data, they are treated with suspicion by most people in the UK. And it’s not just fraud – when sharing financial information with their bank, people worry about whether it’s being kept safe. Once again, concerns in Britain are the highest in Europe.

While people largely want to keep their financial information secure, innovations such as open banking have made it clear that the secure sharing of specific financial information can provide consumers with many benefits. Such innovations enable financial service providers to better understand the financial health of their customers and ensure that the services and products they offer are relevant. As we all adapt to the rising cost of living, this kind of customized service is more important than ever.

And yet, fraud and security fears hold people back and stifle providers’ ability to better serve their customers. Banks and other players in the financial sector must now work together to restore this confidence in their services and make it clear that modern banking is safe.

An important way providers need to take action is to take action to remove those looking for their customers and prevent them from ever being accepted on their platforms. It is these areas where collaborations between major players – such as banks and insurers – and people in the fintech sector can really shine; Combining experience and reach with an agile and innovative approach.

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For financial services providers, including banks and alternative lenders in the UK, CRIF offers a completely secure, digital onboarding process, enabling providers to optimize their first contact with a new customer, making the process as seamless and easy as possible. attractive, while providing enhanced data. And the analytics they accept on their systems are legitimate customers.

CRIF has been supporting the UK insurance market for over 25 years, helping the industry to tackle fraud. Using data, artificial intelligence, proprietary machine learning techniques and analytics, we help organizations identify fraudulent connections. Our system provides a real-time fraud risk score, enabling insurance companies to significantly accelerate their ability to identify large amounts of information and reduce fraud attempts.

It’s never a good time to fall victim to fraud, but getting caught on a big holiday just makes things worse. Only by working together to address these threats and using the latest solutions and technology to help protect their customers can providers restore trust in the service and ensure more people are protected against fraud.

Source: www.bing.com

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