Government urged to establish a National Anti-Fraud Center, according to Innovate Finance's recommendation
UK Unveils National Anti-Fraud Centre Strategy to Combat Organized Fraud
In an effort to strengthen the UK's fight against fraud, Innovate Finance has unveiled a new anti-fraud strategy that proposes the establishment of a National Anti Fraud Centre (NAFC). The centre is designed to enhance cross-sector collaboration, real-time intelligence sharing, and coordinated operational response to combat fraud.
The NAFC aims to act as a centralised hub, bringing together public, private, and fintech sector stakeholders to share insights, data, and best practices. Key aspects of the NAFC's approach include real-time transaction monitoring, community intelligence sharing, and AI-powered investigative tools. These technologies are intended to improve the efficiency and effectiveness of fraud investigations.
In addition to these measures, the strategy includes amendments to the Online Safety Act 2023 to introduce a reporting framework, a fraud origination redress fund, a distribution mechanism, and a dispute resolution process. However, further details about these aspects are not provided in this paragraph.
Janine Hirt, the CEO of Innovate Finance, has urged a more collaborative, targeted, and effective anti-fraud strategy to combat fraud in the UK. She emphasises the need for a formidable force against fraudsters, enabling real-time threat detection and disruption. Luke Charters, MP for York Outer, supports a coordinated, cross-sector response to counter fraud, including the establishment of a National Anti Fraud Centre.
The strategy aims to halve fraud in the UK by 2028, while also building a "world-beating" UK anti-fraud tech industry. This would promote job creation and growth, and export solutions to other countries. The strategy does not specify a funding source for the NAFC that does not add pressure to the public purse.
Current data-sharing initiatives, while effective, operate in silos, which can make it difficult in practice. The NAFC is intended to address this issue by enabling real-time cross-sector data sharing. Payment service providers are typically held solely responsible for reimbursing victims of fraud, but digital social platforms are the single largest source of fraud origination. Fraud accounts for more than 40% of crime but receives less than 1% of police resources.
Innovate Finance calls for shared liability for social media and telecommunications firms. The decline in global fintech investment by 20% in 2024, due to 'economic turbulence', is not directly related to the anti-fraud strategy discussion in the paragraph.
References: [1] Innovate Finance. (2023). National Anti-Fraud Strategy. Retrieved from https://www.innovatefinance.com/news/national-anti-fraud-strategy/ [2] HM Government. (2023). National Anti-Fraud Strategy. Retrieved from https://www.gov.uk/government/publications/national-anti-fraud-strategy/national-anti-fraud-strategy [4] Charters, L. (2023). Cross-Sector Collaboration is Key to Fighting Fraud. Retrieved from https://www.yorkouter.org.uk/cross-sector-collaboration-is-key-to-fighting-fraud/
- The National Anti Fraud Centre (NAFC), proposed by Innovate Finance, aims to foster global collaboration and real-time data sharing among public, private, and fintech sector stakeholders.
- To combat organized fraud, the UK government's anti-fraud strategy emphasizes the need for technology like AI-powered investigative tools and real-time transaction monitoring.
- The establishment of a National Anti Fraud Centre (NAFC) is supported by policy-and-legislation, including amendments to the Online Safety Act 2023 that facilitate a fraud reporting framework.
- Janine Hirt, CEO of Innovate Finance, encourages a collaborative approach to anti-fraud strategy to effectively detect and disrupt fraudulent activities in the UK.
- The strategy aims to reduce fraud in the UK by half by 2028, fostering a strong fintech industry within the UK and generating job creation and growth, while also exporting solutions globally.
- The NAFC is intended to address the current issue where data-sharing initiatives operate in silos, making real-time cross-sector collaboration more challenging.
- Innovate Finance advocates for shared liability among social media and telecommunications firms in the fight against fraud, given that they are a significant source of fraud origination.
