CFIT forms coalition to fight economic crime with improved verification methods

The Center for Finance, Innovation and Technology (CFIT) is forming a new coalition to combat economic crime with improved verification methods. By bringing together experts from a wide range of sectors, including finance, technology, politics and academia, CFIT plans to develop solutions to detect fraud, protect small and medium-sized enterprises (SMEs), and strengthen defenses against crimes such as Authorized Push Payment (APP). ) fraud.

The CFIT coalition will include digital ID providers, technology companies, trade associations, major banks and challengers, fintech companies and credit agencies. The full list of partners is not yet disclosed. These participants will collaborate on data-driven research to verify the legitimacy and identity of companies engaging in financial services, the company notes.

They will also address other security challenges in commerce and payments affecting UK businesses and consumers. The aim, according to CFIT, is to show how tackling financial crime can protect businesses and their customers while enabling banks and fintech companies to reduce liability, reduce costs and improve ‘client experience.

The coalition’s first concepts are currently being tested with Citizens Advice and several retail banks, following a proof of concept with HSBC. The coalition will begin its activities immediately, with interim findings expected in the fourth quarter of 2024 and a final report in early 2025.

CFIT CEO, Ezechi Britton MBE, highlights the importance of this initiative: “Economic crime poses a major threat to the UK’s financial security and can have a profoundly distressing impact on consumers and businesses.

“At CFIT, we are committed to solving this problem and making the financial services industry more robust by uniting the best minds in the industry and beyond to combat this pressing issue. This will be achieved by auditing UK businesses to combat economic crime. Our intention is to help the new government and industry put in place measures that will make financial services safer and our economy even more resilient in the years to come.

This initiative builds on CFIT’s previous Open Finance Coalition, which highlighted the potential of data sharing technology to improve financial outcomes for UK consumers and provide better access to finance for SMEs.

Martin McTague, National President of the Federation of Small Businesses, highlights the impact on small businesses: “Fraud takes a heavy toll on small businesses, and every effort must be made to tackle it so customers can shop online securely and small businesses can trade. safely.

“Any proposed fraud solution must take into account the needs of small businesses, in terms of how best to protect them, and in terms of how to make it as simple as possible to integrate them into their processes. »

Juniper Research estimates that cumulative merchant losses due to online fraud globally between 2023 and 2027 are expected to exceed $343 billion.

Article topics

Center for Innovation in Finance and Technology (CFIT) | digital identity | financial crime | financial services | fraud prevention | identity verification | KYC | UNITED KINGDOM