July 12, 2022

According to the latest figures in UK Finance’s Annual Fraud Report , criminals stole over £1.3billion in 2021 through a combination of authorised and unauthorised fraud, taking advantage of ongoing disruptions as a result of the pandemic.

The banking and finance sectors must do all they can do to protect customers from fraud and scams, whilst also continuing to work towards better cross-industry collaboration and information sharing. In addition to seeking partnerships with government and law enforcement to stop fraudsters infiltrating the system at every entry point. This requires the proactive implementation of technology to fight fraud.

Here’s five ways to effectively configure your fraud technology to defend against the latest fraud trends:

  1. Investing in advanced security systems to protect customers from fraud, including real-time transaction analysis and intelligence sharing. Cybercriminals have become more sophisticated in their use of bots and synthetic identities giving fraudsters the information they need at their fingertips to masquerade as customers and perpetrate crimes.
  2. Implementing a global digital identity tool to flag any fraudulent activity. LexID Digital provided by the LexisNexis® Digital Identity Network®, analyses billions of transactions and uses a unique customer identifier to merge offline and online data from both web and mobile devices in near real-time, establishing a 360 view of your customer to help detect, flag and block complex fraud.
  3. UK Finance noted the increasing importance of Behavioral Biometrics tools to flag behaviour changes on a consumer’s device that could indicate suspicious activity. Behavioral biometrics are becoming increasingly critical, not only to detect and identify scams whilst in progress, but also as an additional authentication layer that both speeds up the process for good customers and meets SCA compliance.  
  4. Delivering customer education campaigns to help them stay safe from fraud. UK Finance has noted numerous ways in which the banking and finance industry is working hard to protect customers from fraud and scams with effective and detailed customer education campaigns including ‘Take Five to Stop Fraud’ and bringing the industry together with the ‘Take Five Charter.’   
  5. Working with text message providers and law enforcement to block scam text messages, including those exploiting the Covid-19 crisis. Whilst SMS OTPs still have a role to play in fraud prevention, long term they must be replaced with more reliable and less vulnerable methods, for example, push notifications and other methods that do not rely on channels with weak security. UK Finance urges consumers to accurately check SMS OTP messages to ensure it accurately describes their transaction, and to never divulge their OTP.

Watch the webinar with UK Finance and LexisNexis Risk Solutions as they discuss the fraud trends as seen in the blog: https://www.workcast.com/register?cpak=4258948011612550

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