UK Government Publishes New Fraud Strategy for 2023

The strategy is based on three pillars:

1. Prevention: The government will work to prevent fraud from happening in the first place. This will involve raising awareness of fraud, educating people about how to protect themselves, and working with businesses to make it harder for fraudsters to operate.
2. Pursuit: The government will work to bring more fraudsters to justice. This will involve investing in law enforcement, improving the sharing of information between agencies, and working with international partners to track down and prosecute fraudsters.
3. Protection: The government will provide support to victims of fraud. This will involve helping victims to recover their money, providing emotional support, and working to prevent them from being scammed again.

With the total cost to society of fraud against individuals in England and Wales estimated to be at least £6.8 billion in 2019-20, the government is committed to tackling fraud and protecting people from this crime.

Within the financial sector, online banking and quick payments have many benefits for customers and businesses. However, fraudsters have also taken advantage of these conveniences to defraud individuals and businesses and quickly move money around to avoid having to return the stolen funds.

To combat this, the financial sector has invested in resources and new technologies to better identify and block suspicious payments. Some of the key initiatives that have been taken to help prevent fraud include:

• Strong customer authentication (SCA): When customers make a payment online, the Payment Services Regulations 2017 require all payment service providers (PSPs) to verify the customer's identity. This helps to prevent fraudsters from making unauthorized payments using someone else's details.
• Confirmation of payee (CoP): CoP is a verification service that allows payers to see if the name of the payee matches the account details of the person they think they are sending money to. The Payment Systems Regulator (PSR) has issued several directions to extend the reach of CoP across the industry to over 400 firms.
• The Banking Protocol: The Banking Protocol is an industry initiative led by UK Finance, where bank staff are trained to spot when a customer is about to fall victim to an authorized fraud and work with the police to convince them not to make the payment.

These initiatives are helping to make online banking and payments more secure for everyone. However, it is important to remember that fraudsters are always looking for new ways to exploit vulnerabilities. It is therefore important for customers to be vigilant and to take steps to protect themselves, such as:

• Being wary of unsolicited emails, texts, and phone calls
• Never giving out personal information, such as your bank account details or credit card number, to someone you don't know
• Being careful about what information you share on social media
• Keeping your software up to date
• Using strong passwords and changing them regularly
• Being aware of the latest fraud scams

By following these tips, you can help to protect your firm and your clients from fraud.

Our SafePay solution makes it easy for law firms to request and receive payments instantly from their clients, helping to reduce the risk of fraud. To find out more, get in touch today.