The greatest cross-sector fraud-sharing database in the country is available through Cifas, the top fraud prevention service in the UK. Cifas, a non-profit organization, works in the public, corporate, and nonprofit sectors to lessen and prevent financial crime and fraud.

We now meet with Mike Haley, the company's CEO, who shares his outlook for a successful future in the battle against fraud by utilizing the strength of the community.

Cifas: Searching for a fraud-free future

According to Mike, "Cifas wants to completely eradicate fraud in the UK." "Although it may seem lofty—fraud makes up 38% of all crimes in England and Wales—why not make reaching the moon our long-term objective since no one ever imagined doing so?"

In fact, effective measures need to be put in place to achieve these goals, as fraud rates account for a sizeable amount of crime in the UK.

"Our goal is to build the biggest network of organizations fighting fraud by exchanging information, knowledge, and data. We will then harness this network's strength to develop services and products that safeguard everyone."

Promoting community involvement is the main goal of Cifas. The organization, being non-profit, is motivated by the requirements of its constituents. Therefore, Cifas' goals of a fraud-free future can also come true if more and more members of its community recognize the need of preventing financial crime.

"I envision Cifas as a key element of a novel and enhanced data-sharing framework for the UK, which will enable cross-sector cooperation in the public, private, and law enforcement sectors," Mike continues.

Reaching short- to mid-term objectives is a prerequisite for reaching long-term objectives. This is manifested for Cifas in the introduction of fresh goods and services that enable its members to intensify their anti-fraud initiatives.

Mike goes on, "We'll be launching a checking service for victims of fraud as well as a cutting-edge method for members to check beneficiary accounts." Both will assist businesses in preventing Authorized Push Payment fraud against both their clients and their own establishment.

We're also launching a tool called Vision that enables Cifas members to track a customer's evolving risk profile by receiving real-time notifications.

Furthermore, users will have control over their personal data and be shielded from identity theft thanks to our identity protection software. It is on schedule to deploy in 2025 and is already undergoing beta testing.

The significance of exchanging data across sectors
Businesses from all industries should recognize the benefits of exchanging data with one another in order to ensure that the community is actively involved in avoiding fraud in the future.

According to Cifas, there is a notable increase in fraud prevention when data is shared. Companies that are prepared to share their data can save fraud losses of a total of £1.8bn (US$2.29bn).

Fraudsters will constantly follow the money and take advantage of any loopholes in establishments such as challenger banks, EMIs, established banks, or innovative payment methods. We need to increase our defensive perimeter in order to counter those attacks," Mike explains.

"We want to protect fintechs from fraud and give them access to the insight, intelligence, and innovation from across sectors by making the data filed by our traditional finance members available to them." Our primary tenet of membership is reciprocity.

Fintech fraud challenges

Of course, the financial sector is one where fraud is rampant, with the emergence of Gen AI giving con artists more advanced instruments at their disposal to launch destructive assaults.

We examined earlier this week how AI might spearhead fintechs' efforts to improve ID verification procedures and combat fraud.

According to the CEO of Cifas, hackers are attempting more often to access and take control of consumer accounts by using AI to get around biometric identification verification.

He predicts a rise in technological assaults on infrastructure through the use of remote access tools and "innys," or insiders who are employed by companies to get beyond security measures or flaunt their intimate knowledge.

Furthermore, fraud-as-a-service will keep growing, giving less experienced thieves the means to carry out large-scale attacks.

Additionally, we must strike the correct balance between consumer convenience and security. The two don't always conflict, and efficiency and security may be increased throughout an onboarding or payment process by using the appropriate datasets through API call-ups.

Lastly, it can be difficult to strike a balance between keeping the weak and people who have been deceived out of the financial system and removing criminal actors like money mules. There is still no solution to this puzzle.

Collaboratively mapping fraud assaults across sectors and figuring out what information may be used when and when to identify suspicious transactions or rogue actors are two important tasks.

"It's imperative that banks, fintechs, social media firms, and the gaming and cryptocurrency industries all exchange more information. We can beat fraud if we establish the proper frameworks, data flows, and security measures to exchange real-time risk data.

We discussed the validity of bank fraud detection procedures with Consultancy Regulatory Solicitor and Cifas specialist Jeremy Asher last year.