In an effort to tackle the rising incidence of fraud, prominent banks, technology, and telecommunications firms in the UK have announced a collaborative initiative under the Stop Scams UK programme. This effort involves the sharing of real-time data on fraud indicators to enhance consumer protection and foster economic security.
Fraud has emerged as a prevalent crime, representing 41% of all criminal activity in England and Wales. The companies involved in this initiative are transitioning from initial trials to actively exchanging live data related to fraudulent activities. This includes sharing information on suspicious URLs and abnormal transaction activities to improve the detection and prevention of scams.
The coalition comprises key players such as Barclays, Amazon, Google, BT, HSBC, Lloyds, NatWest, Nationwide, Meta, Match Group, Monzo, Three, and Santander. These organisations have collectively endorsed a joint statement underscoring the need for cross-sector collaboration to efficiently counteract fraudulent actions.
Through the Stop Scams UK initiative, technology and telecom companies are aligning with financial service providers to share technology and intelligence. This alliance is designed to intercept fraud where it occurs and support consumer trust alongside economic advancement.
Members of Stop Scams UK have committed to pooling their strengths and resources. This collective approach aims to safeguard more consumers, increase awareness about scams, and impede criminal operations. The group also seeks collaboration with governmental entities and law enforcement to make the UK a challenging environment for fraudsters.
Building a united front against fraudsters
“Through our pilot work to share fraud data between industry sectors, we have proved that collaboration gets ahead of the criminals and defeats fraudsters,” said Stop Scams UK chair Ruth Evans.
This initiative marks a shift from isolated efforts to a unified front against fraud. By investing in financial resources, enhancing data-sharing capabilities, and developing technological solutions, these organisations aim to create a comprehensive ecosystem. The ultimate goal is to extend the reach of anti-fraud measures across various sectors efficiently.
Furthermore, Stop Scams UK envisions these efforts not only as a way to protect consumers but also as a catalyst for broader economic growth. By reducing the impact of fraud on businesses and individuals alike, this initiative seeks to restore confidence in digital transactions and online platforms.
In October 2024, the Payment Systems Regulator introduced significant protections for victims of Authorised Push Payment (APP) scams. Banks are now required to compensate victims up to a maximum of £85,000 when individuals are deceived or manipulated into transferring funds. There has been ongoing tension between the banking sector, payment companies, and social media firms over liability for online fraud compensation.
Last year, Revolut publicly criticised Meta for its approach to handling fraud on its platforms, asserting that Meta should take responsibility for compensating scam victims. Recently, UK Finance claimed that 72% of APP fraud originates online and 16% through telecom networks. The trade body highlighted that in 2023, approximately £1.2bn was lost to payment fraud, impacting consumer trust, reducing small business productivity and profits, and redirecting funds from the economy to organised crime.
Read more: 68% of UK fintechs report rising fraud cases, losses reach millions
