As Digital Transformation Accelerates in the UK, Industries Unite Against Fraud

Keiron Dalton
July 7, 2022

When it comes to cybersecurity, there’s a well-known saying that “the human is the weakest link.” More often than not, data breaches, hacks, and other security events can be traced not to the failure of a server but rather to human error (an employee falling victim to a phishing scam or a consumer sharing a one-time passcode with a fraudster, for example). While humans may be a vulnerability when it comes to cybersecurity, we are also the reason why the technology was created in the first place. This strange paradox is the reason why as more people rely on technology (whether it be to bank online, register for an iGaming site, or send money to a loved one), the less secure the technology is. It should come as no surprise then that as new business models, new technologies, and a global pandemic accelerate the shift towards a digital-first economy, fraud has reached unprecedented levels.

In light of this catch-22, the fundamental challenge facing companies today is how to balance convenience with security. While there are clear benefits associated with digital transformation as it enables tasks to be completed remotely and at the convenience of the consumer, there is also a profound cost- the increase in fraud and the proliferation of scams.

While scams are a global phenomenon, I would argue that my home country of the UK is arguably the scam capital of the world. Over the past four years, I have personally witnessed the negative impact fraudsters have on society as they continually target vulnerable residents, especially the elderly and digitally inexperienced. Despite efforts to curb scams, however, the number of victims and the amount of money stolen in the UK only continue to increase. 

Until recently, scam mitigation methods were limited primarily to educating the consumer about scams and encouraging them to think twice before authorizing a transaction. This strategy is part of a noble effort that has made a positive impact. Despite these efforts, however, fraud losses continue to be astronomical. A recent report authored by UK Finance calculated the unauthorized financial fraud losses across payment cards, remote banking, and cheques at £783.8 million in 2020. Clearly, more work needs to be done to prevent scams. 

Fortunately, a new and more ambitious era of collaboration has begun as financial services organizations, GSMA (an industry organization that represents the interests of mobile network operators), UK Finance, leading mobile operators, and industry-leading identity providers such as Prove all working together with a common goal: protecting consumers by preventing fraud. While it’s important not to give too much away so as not to inadvertently aid fraudsters, here’s our general aim: 

Today, consumers are frequently socially engineered (aka fooled) into authorizing transactions that send their hard-earned money to fraudsters. Only after the money is gone do they realize they have been duped. To help consumers from falling for this scam, we are developing methods that can better flag this unusual activity while still ensuring an inclusive and convenient experience for consumers. 

RELATED: Prove Partners with Financial Organisations and Mobile Carriers in the United Kingdom to Fight Scams Such as Authorised Push Payment Fraud

The learnings and cross-market collaboration will continue as Prove not only supports the delivery of technical elements but also provides rich consultative insight from over 10 years of experience focused on cryptographic authentication and the challenges seen across multiple geographies. 

Prove is the first to provide dynamic insight on scam signals as part of live use cases today within the UK. The rich insight we glean fosters further opportunities to mitigate this plague and with our global footprint, it ensures collaboration can progress beyond the UK.

Learn how Prove can protect your company from fraud, schedule a demo today.

Keep reading

See all blogs
How to Defend Against the Rise of SIM Swap Attacks

The Federal Trade Commission (FTC) received reports of a significant increase in SIM swap attacks in 2023, and Experian's 2024 scam forecast identified SIM swapping as one of the top threats, emphasizing the need for heightened awareness and preventive measures.

Mary Ann Miller
July 24, 2024
Fraud in the Age of AI: Meet the Shapeshifter

The COVID-19 pandemic not only changed the way we work and live, it also unleashed a wave of fraud unlike anything we've seen before.

Mary Ann Miller
July 18, 2024
Company News
Introducing Prove Link™ – Unlocking the Power of Identity for Any Business

To continue achieving our mission of accelerating trusted interactions on the internet, we’re proud to announce the introduction of the Prove developer self-service platform and the Prove LinkTM SDK. With these tools, it’s now faster and easier for any company to integrate our industry-leading identity technology into its brand operations.

July 16, 2024
Company News