New research explores the increase in recent payment fraud attacks and provides recommendations for businesses on combatting the threat
London, UK – 2nd September 2021: The Emerging Payments Association (EPA), which promotes collaboration and innovation across payments, has today released its whitepaper, ‘Financial Crime, Payment Fraud, and the Role of Digital Identity’, in partnership with Refinitiv.
The whitepaper highlights how criminals can profit from financial crime and commit payment fraud, working together to create a financial crime marketplace utilising the latest technologies. In addition to detailing the current landscape and emerging threats, based on proprietary research, the whitepaper provides insights into how fraud controls can be improved.
With the National Crime Agency (NCA) estimating that the total cost of organised crime to the UK economy amounts to £37 billion annually, current defence approaches are broken. Fundamental change is required as society, organisations and individuals are all suffering as a result of financial crime. The problem is likely to get worse, as criminals are innovating at scale and staying at least one step ahead of Financial Services (FS) providers.
Through extensive primary research the whitepaper explores the primary emerging threats, including the rise in botnet attacks, risks relating to increased contactless limits, synthetic identities, and the increasing volume of data that is available to criminals. It found that Digital Identity (DI) services can solve several of today’s problems, if implemented well, but it is recognised that they are not the complete answer. Of those interviewed for the research, many payment professionals felt that the lack of a national DI service is a key obstacle in fighting crime and fraud.
key area of focus was investigating the potential for digital identity as a secure foundation layer, in order to reduce financial crime and payment fraud. Interviewees included subject matter experts from financial services providers, card issuers, payment processors, digital identity specialists, consultancies, and solution providers.
Tony Craddock, Director General of the Emerging Payments Association, commented: “Occurrences of financial crime are soaring, and we are staring down the barrel of a fraud-shaped gun unless we as an industry start working to get these numbers under control. Along with data sharing and better collaboration, one of the key findings of the research was that digital identity will play a critical role in this going forward, providing a secure foundation layer to prevent crime upfront and on an ongoing basis.”
James Mirfin, Global Head of Digital Identity & Fraud Solutions at Refinitiv, said “The unprecedented growth in the scale, sophistication and creativity of criminals who are able to deploy technology in their pursuit if ill-gotten gains should concern us all. The industry must continue to collaborate on solutions like Digital Identity, which can materially impact the activities of criminals and fraudsters, and we need to demonstrate tangible progress.”
Jane Jee, Chair at Kompli-Global and Project Financial Crime leader at the Emerging Payments Association, said: “Criminals understand how they can profit from financial crime and commit payment fraud as evidenced by the escalating number of attacks and levels of losses incurred. I find it worrying how they are now working closer than ever before, in effect creating a crime marketplace and adopting the latest technologies. Promisingly, as our research highlights, some initiatives are making a real difference and it suggests how are industry must work together more going forward.”
To download a copy of the whitepaper, please visit: https://www.emergingpayments.org/whitepaper/financial-crime-payment-fraud-and-the-role-of-digital-identity/
About the EPA
The Emerging Payments Association (EPA), established in 2008, sets out to make payments work for everyone. To achieve this, it runs a comprehensive programme of activities for members with guidance from an independent Advisory Board of 17 payments CEOs.
These activities include a programme of digital and (when possible) face-to-face events including an online annual conference and broadcast awards dinner, numerous briefings and webinars, CEO Round Tables, and networking and training activities. The EPA also runs six stakeholder working groups. More than 100 volunteers collaborate on the important challenges facing our industry today, such as financial inclusion, recovering from Covid-19, financial crime, regulation, access to banking and promoting the UK globally. The EPA also produces research papers and reports to shed light on the big issues of the day and works closely with industry stakeholders such as the Bank of England, the FCA, HM Treasury, the Payment Systems Regulator, Pay.UK, UK Finance and Innovate Finance.
The EPA has over 130 members that employ over 300,000 staff and process more than £7tn annually. Its members come from across the payments value chain including payments schemes, banks and issuers, merchant acquirers, PSPs, retailers, TPPs and more. These companies have come together to join our community, collaborate, and speak with a unified voice.
The EPA collaborates with its licensees at EPA EU and EPA Asia to create an interconnected global network of people passionate about making payments work for all.
Refinitiv, an LSEG (London Stock Exchange Group) business, is one of the world’s largest providers of financial markets data and infrastructure. With $6.25 billion in revenue, over 40,000 customers and 400,000 end users across 190 countries, Refinitiv is powering participants across the global financial marketplace. We provide information, insights, and technology that enable customers to execute critical investing, trading and risk decisions with confidence. By combining a unique open platform with best-in-class data and expertise, we connect people with choice and opportunity – driving performance, innovation and growth for our customers and partners. For more information visit: www.refinitiv.com