Welcome to The Current Account! We hope you enjoy our latest round-up of the top news from the industry in April.
Headlines from the banking sector this month
In this edition of The Current Account, we focus on Fraud in the Banking Sector, and the challenging jobs market.
- Banks work hard to stay one step ahead of fraud, and the regulation that surrounds it is becoming increasingly more stringent. Fraudsters are becoming more advanced in their methods to defraud Banks (and their customers) and as a result, the volume and complexity of fraud is increasing
- Impersonation fraud has increased by 300% since 2019 and Friends and Family fraud is on the rise (fraudsters pose as a relative or friend requesting financial support). We’ve also seen instances where Open Banking has been used to carry out fraudulent transfers
- As we see challenger Banks increasing their market share due to their seamless onboarding processes and digital offerings, they have been warned about their inadequate financial crime checks by the FCA
- It is not only Banks and their customers that are impacted by inadequate fraud controls, but retailers are also impacted too - UK retailers lost £130 million in sales due to not being fully compliant with new Strong Customer Authentication (SCA) which came in to force last month
- The sophistication of fraud introduces an opportunity for third parties to develop and offer innovative fraud detection and prevention solutions. IBM has introduced real-time AI for transaction processing and New Zealand based First AML has launched its cloud-based platform in the UK
- Whilst the measures being introduced by Banks are to protect customers, there are some who are becoming frustrated with some of the processes, and at times ignoring prompts to designed protect them