Nicky Chandarana’s Post

🔒 Fraud Alert: Key Trends in 2024 According to UK Finance, losses from unauthorised fraud have risen in the first half of this year, while scams involving tricked money transfers have decreased. Overall, criminals stole £571.7 million through fraud in H1 2024, marking a 1.5% decrease from H1 2023. How vulnerable are businesses to these scams, and what role can finance teams play in safeguarding against them? 🤔 Learn more: https://bit.ly/3A3BOYF #ReedAccountancy #Accountancy #FinancialWellbeing #Finance #Security

🚨 New Fraud Protection Rule Alert! Starting 7 October 2024, UK banks must refund fraud victims up to £85,000 within 5 days under new rules from the Payment Systems Regulator. This applies to authorized push payment (APP) fraud, where scammers trick people into sending money. Banks can now claim half of the refund from the fraudster's receiving bank. To protect themselves, banks should enhance fraud detection systems and close suspicious accounts swiftly to avoid hefty refund liabilities. #Fraud #Banking #Finance #Security #FraudPrevention

𝗨𝗞 | 𝗡𝗲𝘄 𝗥𝘂𝗹𝗲𝘀 𝗘𝗺𝗽𝗼𝘄𝗲𝗿 𝗕𝗮𝗻𝗸𝘀 𝘁𝗼 𝗖𝗼𝗺𝗯𝗮𝘁 𝗙𝗿𝗮𝘂𝗱 𝗠𝗼𝗿𝗲 𝗘𝗳𝗳𝗲𝗰𝘁𝗶𝘃𝗲𝗹𝘆 💪 Banks will be given the authority to delay suspicious payments by up to 72 hours. This change will help to protect consumers from fraudsters, offering banks extra time to investigate potential scams. Fraud is a major issue in England and Wales, with over £460 million lost last year. The new rules target scams like purchase and romance frauds, giving banks the tools they need to safeguard customers. Banks must notify customers when payments are delayed and compensate for any incurred fees. These actions aim to protect without unnecessary delays. Can these measures effectively reduce fraud and protect consumers? #UK #Fraud #Scams #ConsumerProtection https://lnkd.in/eUNdu2wX

Should banks charge an ‘excess fee’ for reimbursing victims of fraud, or should better controls be in place to prevent fraud? New UK bank law could charge fraud victims up to £100 to process cases of Authorized Push Payment (APP) fraud, which occurs when individuals are tricked into sending money to fraudsters. This fee, typically labeled as an “administration fee,” has raised concerns as it may dissuade customers from reporting fraud, particularly for those who have already lost significant sums of money. This practice has prompted calls for greater consumer protection and transparency, as well as criticism that it unfairly penalizes vulnerable victims instead of supporting them in retrieving their lost funds. Additionally, there is increasing pressure on banks to improve their fraud detection and prevention systems without adding undue costs to affected customers.

The 2024 UK Finance Annual Fraud Report (https://lnkd.in/dQYC3xUU) highlights a significant rise in identity fraud within the UK financial services sector, particularly in two key areas: Card ID Theft/Third-Party Application Fraud: 👮🏼♀ Cases: 20,792 (a 25% increase compared to the previous year) 💷 Value: £31.7 million (an 85% increase compared to the previous year) Card ID Theft/Account Takeover: 👮🏼♀ Cases: 121,650 (an 85% increase compared to the previous year) 💷 Value: £47.4 million (a 37% increase compared to the previous year) This stark rise in fraud cases and value indicates an evolving threat to the financial industry, with criminals exploiting identity theft tactics and technology more aggressively. #identity #identityfraud #identityrepair #fraud #digitalidentity #biometrics

UK Finance released its 2024 annual fraud report, detailing the amount its members reported as stolen through payment fraud and scams in 2023. The highlights that caught our eye: - While criminals stole £1.17 billion through unauthorised and authorised fraud in 2023, Banks prevented a further £1.25 billion of unauthorised fraud through advanced security systems including the use of transaction monitoring systems. This figure represents a 7% increase in the amount of unauthorised fraud prevented. - The number of romance scams, where victims are tricked into believing they are in a relationship, also reached new highs in terms of value and volume, up by 17%. - The financial services sector is leading efforts to protect customers from fraud, including partnering with other sectors, government and law enforcement to prevent and disrupt this criminal activity and bring perpetrators to justice. Read the full report here: https://lnkd.in/eqpBvKRb #fintech #financialinclusion #fraudprevention

https://lnkd.in/gX8v_rB4 The United Kingdom introduced new fraud rules which took effect on October 7th that aim to expedite reimbursements for scam victims. These rules ensure that funds are returned within five working days and will hold banks more accountable. Just last year nearly 3 million Britons lost over £1.1 billion to scams through authorized push payment fraud (APP) fraud. The new rules also require that both the sending and receiving banks share liability for losses, which encourage all banks to boost fraud protection. The automatic reimbursement cap was also reduced from £415,000 to £85,000. However, there are still concerns about customer complacency and the role of social media platforms in preventing fraud. The Payment Systems Regulator will monitor these new rules and the industry as a whole over the next year to assess their effectiveness. #UK #fraud #new #rules #scams #socialmedia #customers #fraudprevention #regulator https://lnkd.in/gXnNqipj

💥 New data from the Payments Systems Regulator (article link below) has revealed that some UK banks are returning money lost by customers to fraud in less than 10% of cases. With the regulator's looming mandate to fully reimburse victims, these banks could see massive payouts if things don't change.    In contrast, banks like Nationwide Building Society, TSB Bank and Barclays had fully refunded customers in 96, 95, and 82% of reported cases of APP fraud.   There are concerns around the upcoming reimbursement rules, including that some customers not be as vigilant for fraud as they know they will get the money back no matter what, and this increases the burdens on firms accountability alongside the monetary cost . There is still lots we can do to educate and support firms with driving down APP fraud.   For example, fraudsters go out of their way to target new payment firms. They know from experience that most have not sourced specialist compliance support ahead of launch, and therefore will struggle with AML and fraud prevention. Bad actors understand the vulnerabilities and will exploit them.   The call from a coalition of companies (including the likes of Starling Bank and Virgin Media O2) urging ministers to do more to foster data sharing among industry, law enforcement and government to better prevent scams is the right one. Cross-industry collaboration will also be incredibly effective for APPF prevention.   As will good compliance!   If you're looking for advice or support on the upcoming mandate or want to talk about compliance more broadly - let me know. #fraud #appfraud #finanicalcrime #compliance Thistle Initiatives   https://lnkd.in/ejs-zZk6

I've used my morning commute today to read through two brand new fraud trend reports, from UK Finance and Interpol published in the last few days. Both worth a read in full to help inform and calibrate detection controls for external fraud but my key takeaways were: - There has been an overall 2% decrease in reported fraud across the UK this year (in my view this is likely a result of the huge amount of work and resources applied by both government and regulatory agencies tasked with addressing financial crime and the working level implementation of tighter fraud controls and customer verification) - Both reports outline a clear change in criminals tactics, moving away from the targeting of weaknesses in systems and controls (generally in order to compromise personal data) and a move towards the increasingly sophisticated targeting of individuals, including through the use of AI ‘deepfakes’ in interactions with victims, and organised financial crime including the selling of 'leads' (sometimes referred to as 'suckers lists') to identify susceptible individuals. This change in typology in useful in developing controls and mitigation, as it will require greater, and perhaps targeted customer education to help identify scams. It also emphasises the need for full and timely SAR reporting to provide sufficient information for crime groups to be identified. - One particularly nasty emerging global typology, which we've heard referenced increasingly regularly recently is still on the rise - 'pig butchering'. This refers to a hybrid type of targeted scam which combines romance and investment fraud, making it less likely that victims will report. - Finally a crossover between financial crime and forced labour/modern slavery - Interpol highlights evidence that organised crime gangs are using forced labour globally to operate 'scam centres' which appear broadly equivalent to the 'boiler room scams' we have long been familiar with. Please do read more, and let me know any of your additional key points! #fraud #financialcrimecompliance #externalthreats #financialservices UK Finance: Annual Fraud Report 2024: https://lnkd.in/e7cAA8-9 Interpol Global Financial Fraud Assessment: file:///C:/Users/slps/Downloads/24COM005563-01%20-%20CAS_Global%20Financial%20Fraud%20Assessment_Public%20version_2024-03%20v2%20(3).pdf