FinCrime Dynamics November Newsletter
FinCrime Dynamics offers cutting edge data and intelligence resources to help financial institutions fight financial crime
The government published the National Payments Vision on 14 November:
A few key highlights:
💡 #Innovation: "developments in next-generation technologies like enhanced #DataSharing”
💡 #Regulation: "regulation should support growth and unlock investment”
💡 #Infrastructure: "upgrading the UK’s 9 retail payments infrastructure has been slow and challenging
💡 #ConsumerProtection: "ensure people and businesses can make #payments efficiently and safely
£11.4 billion stolen from the UK in one year!
The Global Anti-Scam Alliance, in partnership with Cifas, published the “2024 State of Scams in the United Kingdom” report:
Key highlights include:
💡 £11.4 billion lost to #scams in 2024, equal to 0.4% of the UK’s GDP
💡 Only 18% of victims were able to recover their losses
💡 71% of scams go unreported
💡 Shopping scams remain the most common, while investment scams continue to rise
💡 Scammers are increasingly using AI-driven tools highlighting the urgent need for better fraud prevention measures
What does a scam look like in data?
1. Account is primed by perpetrator with normal transactions
2. Scam period begins. The same victim is often target more than once on the same day for varying amounts
3. Perpetrator rapidly disseminates funds in a way to avoid triggering alerts via small outflows
4. The challenge faced by firms is how to effectively detect the inbound scam payments
Synthetic Data and Financial Crime
In the last decade, the question of data sharing has gone from “should we?” to “how do we?”. But it is still a highly debated question in our industry in 2024.
#FinancialCrime techniques display transactional and demographic characteristics which leave unique fingerprint patterns that can be modelled using #SyntheticData and #simulations.
Fortunately, simulations and synthetic data are becoming widely adopted by financial institutions as there are very few data confidentiality issues and numerous benefits for #AI applications.
Simulations and synthetic data allow firms to share knowledge about patterns of suspicious activity and effective counter methods without disclosing personal information or exposing themselves to regulatory breaches. Synthetically generated financial crime simulations give financial institutions the chance to build up their defences against criminal techniques.
But how does it all work? Synthetic data is artificial data that mimics real-world data but doesn't contain sensitive personal information. Companies create these data resources in 2 ways:
1. Agent-Based Models (ABMs)
2. Generative AI
Agent-Based Models are simulations used to create synthetic data by modelling interactions between agents
Generative AI techniques create synthetic data based on the patterns they have learned from large datasets
FinCrime Dynamics combines both ABMs and GenAI allowing us to effectively capture both existing and emerging criminal behaviours
Agent-based simulations generate detailed criminal behaviours and network interactions
Generative AI techniques ensure we create synthetic data that is high-fidelity and ensure robust privacy preservation
Why FinCrime Dynamics?
🧐 Experts in Financial Crime Intelligence
Our specialist team and wider community is made up of world leading experts in financial crime intelligence with decades of experience in anti-financial crime compliance, #MachineLearning and data science.
🤖 Leaders in Financial Crime Simulation and Synthetic Data
Our technology solution Synthetizor® contains the world’s most comprehensive library of financial crime behavioural simulations and specifically designed synthetic data generation engine designed for anti-financial crime applications.
🕵️ Independent Assurance Providers
FinCrime Dynamics is not affiliated with any individual financial institution or provider of anti-financial crime controls. This independence allows us to assess and improve our clients’ anti-financial crime controls without a conflict of interest.
FinCrime Dynamics in the news!
FinCrime Dynamics was nominated for the Innovation In AI Award! This award highlights and recognises entrepreneurs who are changing their industries, the economy and society in original and positive ways.
CEO Stephen Quick presented on fighting fraud with data to an audience of over 300 bankers, FinTechs and VCs at Barclays HQ Canary Wharf.
FinCrime Dynamics is proud to have been selected as one of the 2024 Barclays Rise Growth Academy (RGA) companies.
The Financial Conduct Authority hosted its Innovation Services Autumn Expo, featuring presentations from firms participating in the Innovation Pathways program, digital sandbox, or regulatory sandbox.
The FinCrime Dynamics team were proud to be a part of it all! Martyn Higson, Daniel Turner-Szymkiewicz and Dr. Sharon Lee did a fantastic job explaining how FinCrime Dynamics is using innovation and data to help fight financial crime.
The FinCrime Dynamics team had the pleasure of attending the Barclays AI Symposium where Stephen Quick CFA contributed on the panel: "Transforming Finance: The Power and Potential of AI in Financial Services"
The The Payments Association FinancialCrime360 conference was an absolute success! Topics were on point and the financial crime fighting superstar delegates were amazing! It was a pleasure too see old friends and meet new ones!
Better living through data.
2wVery informative, thank you. With £11.4 billion getting lost to scams annually, i think leveraging innovations like ABMs and AI is now essential as they not only enhance detection but also strengthen compliance frameworks. 😄