Government urged to establish a National Anti-Fraud Centre, according to Innovate Finance's proposal
A New Anti-Fraud Strategy Aims to Bolster the UK's Fight Against Fraud
A new anti-fraud strategy, proposed by Innovate Finance, aims to strengthen the UK's defences against fraudulent activities. The strategy emphasizes the establishment of a National Anti Fraud Centre (NAFC) to serve as a formidable force against fraudsters, enabling real-time threat detection and disruption.
The NAFC, also known as the National Fraud Intelligence Bureau (NFIB), is not a new entity. It has been operating in conjunction with Action Fraud, the UK's national fraud and cybercrime reporting centre, since its inception. The NFIB reviews fraud reports, including those submitted via Action Fraud and from industry bodies like Cifas and UK Finance, and disseminates actionable intelligence to relevant police forces for investigation.
Key details and objectives of the NFIB include centralizing fraud reporting and intelligence analysis, cross-sector data sharing, supporting police investigation and crime outcomes, and impacting fraud reduction. By pooling data across public and private sectors and improving analytical capabilities, the NFIB helps law enforcement identify trends and organized fraud networks, thereby improving the focus and effectiveness of interventions.
However, despite the current data-sharing initiatives, they operate in silos, making it difficult in practice. Recognizing this challenge, Innovate Finance urges a more collaborative, targeted, and effective anti-fraud strategy in the UK. Janine Hirt, CEO of Innovate Finance, emphasizes the need for technology via data sharing to strengthen collaboration between industry and law enforcement, stating that there is currently nothing in place with the critical mass or scale required to crush organized fraud.
The strategy also aims to build a "world beating" UK anti-fraud tech industry for job creation and growth, and to halve fraud in the UK by 2028. In addition, it proposes the amendment of the Online Safety Act 2023 to introduce a reporting framework, a fraud origination redress fund, a distribution mechanism, and a dispute resolution process.
The strategy also addresses the issue of payment service providers being solely responsible for reimbursing victims of fraud. Innovate Finance wants the government to fund the Centre in a way that does not add pressure to the public purse.
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 plan, if implemented, could significantly improve the UK's ability to combat fraud, particularly given that digital social platforms are the single largest source of fraud origination, and that fraud accounts for more than 40% of crime but receives less than 1% of police resources.
References: [1] Innovate Finance (2022). Anti-Fraud Strategy. Retrieved from https://www.innovatefinance.com/anti-fraud-strategy/ [2] Canadian Anti-Fraud Centre (2022). About Us. Retrieved from https://www.antifraudcentre-centreantifraude.ca/about-us/ [3] Action Fraud (2022). National Fraud Intelligence Bureau. Retrieved from https://www.actionfraud.police.uk/national-fraud-intelligence-bureau [4] Action Fraud (2022). Cyber Risk Management and Digital Defences. Retrieved from https://www.actionfraud.police.uk/cyber-risk-management-and-digital-defences
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