How UK tech companies are playing their part to tackle the rise of online fraud

20 Jan 2023 10:15 AM

Fraud is now the most commonly experienced crime in the UK, costing over a hundred billion pounds every year, with online fraud making up an increasing proportion of incidents.

The way fraud is committed is changing and dynamic. The pandemic changed the landscape as organisations accelerated the shift to digital operations, and fraudsters have followed suit.

The most common types of fraud include investment and pension scams, identity fraud and phishing among others. But while the instance of some frauds has fallen, such as authorised push payment (APP) fraud, where the victim is tricked into making large bank transfers to fraudsters posing as legitimate payees, there has been a spike in others.

Romance scams have seen a rise in the last year, where fraudsters feign romantic intentions to swindle the victim out of money. This is alongside the appearance of wholly new fraud risks.  

It is becoming clear that to tackle this evolving issue, a cross sector approach across the value chain of tech, finance and law enforcement is vital. 

techUK’s over 900 members, stretching from cyber security companies, telecommunications companies, digital identity providers and online platforms, are committed to combatting online fraud. Our members have experience in dealing with all facets of the issue, from technical threats, including ransomware and phishing to romance scams and nuisance calls. 

A whole system response to an evolving threat: 

It is clear that fraud is not fragmented. There is a value chain that passes through technology, but also encompasses a wider range of actors across our economy and society, from banks through to law enforcement. It is vital we work across sectors and public services, to track the behaviour of fraudsters, see the journey they take victims on and think about how we disrupt and stop the fraudsters at every step. Whether that is through better information sharing and coordinated action or other measures. 

We have seen fraud typologies evolve in different environments, so we must also adapt to tackle changes at every step. The cost of living crisis has seen fraudsters target vulnerable people, while the festive period saw a rise in purchase scams. As platforms continue to take action, criminals look for new ways to conduct scams. 

This is where a joint approach and a whole system change response is crucial. Not only do we need actions from organisations to stop fraudsters, but disincentivising fraud through the prosecution of perpetrators, establishing systems and processes to safely exchange information and data so that they cannot strike again, and widespread education to ensure less people become victims are all necessary tactics. 

techUK is committed to continue leading the tech sector in driving change. We are part of the Home Office’s Joint Fraud Taskforce, working directly with ministers and secretaries of state to address fraud, and as part of ongoing collaborations with the Home Office, National Economic Crime Centre (NECC) and UK Finance (UKF), we work to conduct information sharing across sectors and create tangible solutions through the Online Fraud Group (OFG). techUK members have also been developing innovative solutions to support regulators and industry address fraud, through the deployment of AI, machine learning, digital identity and cyber security solutions. 

techUK members work to tackle fraud at every step: 

techUK’s membership, from platforms, cyber security, telecoms and digital ID and infrastructure providers have been conducting their own work to address a range of fraud types: from smishing, romance scams, nuisance calls and APP fraud. Ongoing member work includes scanning images for known scammers, tracking and blocking IP addresses, sandboxing scammers and machine learning to pick up on fraud behaviours. tech companies also work bilaterally with stakeholders including police forces, Action Fraud, as well as European counterparts to improve fraud sharing information and public education. 

Continuing Coordination and Collaboration:

techUK keenly awaits the publication of the Government’s National Fraud Strategy and is committed to working alongside financial services, regulators, law enforcement and government to continue conversations and create solutions to address this growing threat. 

Tackling fraud is a key focus for techUK in 2023, and we will be working closely alongside our members to address this issue. If you’d like to find out more about our work on fraud and economic crime and how to get involved, please contact: javahir.askari@techuk.org