UK aims to crack down on fraud with new Joint Fraud Taskforce
Theresa May, the UK Home Secretary, recently announced the formation of a new collective aimed at combatting the growing problem of fraud in the financial sector. Outlining the reasons behind the launch of the new Joint Fraud Taskforce, May claimed that “for too long, there has been too little understanding of the problem and too great a reluctance to take steps to tackle it.”
Among rising levels of insurance fraud and online banking fraud, data from the UK Office of National Statistics suggest that credit application fraud in the UK increased by 11% to 61,422 cases for the year ending September 2015.
As the nature of risk evolves, banks must ensure they stay ahead of the fraudsters in all areas. While personal bank account breaches would garner the most media attention, some banks are in danger of not giving due care and attention to credit application fraud. Each loan application brings in an average of €35 to the bank on an annual basis, and have seemingly remained a lower priority for banks despite the fact that fraud in this area can have huge financial ramifications if not tackled intelligently.
The advancement of data science has enabled machine-learning fraud-prevention that is already helping ecommerce merchants drastically reduce their fraud problem. Applying this technology to credit applications, banks can also use huge, combined data pools to automatically identify and intelligently prevent fraudulent activity when processing requests for personal loans.
Joining the UK government in its Joint Fraud Taskforce project are the City of London Police, National Crime Agency, Financial Fraud Action UK, the Bank of England, Cifas and CEOs of the major banks. The group aims to identify and tackle the vulnerabilities that fraudsters depend on when successfully targeting their victims.
At Risk Ident, we welcome any move that initiates greater collaboration and knowledge sharing to help keep customers and businesses safe.