UK Finance, a trade association for the UK banking and financial services sector, joined forces with Which?, a consumer advocacy group, to issue a compelling call to action in a letter addressed to the Chancellor of the Exchequer and the Home Secretary.
This rare collaboration underscores the urgency of addressing the escalating fraud crisis in the United Kingdom, emphasizing the need for a united front across industries to protect consumers and businesses alike.
The letter, titled “UK Finance and Which? – Letter to Government on Tackling Fraud,” highlights the pervasive threat of fraud and scams, urging greater accountability from the technology and telecommunications sectors.
The document reveals a troubling reality: fraud has become the most common crime in the UK, accounting for approximately 40% of all criminal activity.
In 2023 alone, over £1.2 billion was lost to fraud, with £459 million attributed to Authorized Push Payment (APP) scams, where victims are tricked into transferring money to fraudsters.
Despite efforts by the banking sector, which prevented an additional £1.17 billion in unauthorized fraud losses, the scale of the problem continues to grow.
UK Finance and Which? argue that the financial sector cannot tackle this epidemic alone, as much of the criminal activity originates outside its control—particularly through online platforms and telecom networks.
A key demand in the letter is for tech and telecom companies to contribute financially to fraud prevention and victim reimbursement efforts.
The signatories point out that these sectors often serve as gateways for fraudsters, who exploit vulnerabilities in digital infrastructure to perpetrate scams.
For instance, phishing emails, fake websites, and scam calls frequently rely on tech and telecom services to reach victims.
The letter calls for mandatory collaboration, suggesting that these industries should share the burden of costs currently borne largely by banks, which refunded £334.5 million to APP fraud victims in 2023 under a voluntary code.
Additionally, the letter advocates for stronger legislative measures, including the swift implementation of the Online Safety Act to cover all forms of fraud and enhanced intelligence-sharing across sectors.
It praises recent government steps, such as appointing an Anti-Fraud Champion, but stresses that more decisive action is needed.
By rallying government support and cross-industry cooperation, UK Finance and Which? aim to bolster consumer protections and stem the tide of fraud, ensuring a safer financial landscape for all.
This united stance marks a pivotal moment in the fight against economic / financial crime in the UK.