According to UK government statistics, fraud accounts for 40% of all crime, costing the country around £7 billion annually. As many as 60% of fraud cases may involve a touchpoint with a contact centre.

In February 2024, the CCMA hosted a Financial Services Leadership Forum at the House of Lords to bring together senior contact centre and risk leaders from across the finance sector to debate the growing challenge of fraud in the industry.

Some of the key challenges discussed include:

• Fraudsters exploiting IVR systems, using social engineering tactics, and conducting SIM swaps to bypass authentication and access sensitive information.
• The rise of Authorised Push Payment (APP) fraud.
• The impact of new regulations like the Payment Systems Regulator’s (PSR) 50:50 shared liability split.

To rise to these challenges, attendees from organisations such as Monzo Bank, Starling Bank, and Smartnumbers shared strategies, including:

• Implementing structured onboarding and comprehensive fraud awareness training for agents.
• Leveraging AI and technology to track spending patterns, detect anomalies, and integrate insights across channels.
• Fostering collaboration and data sharing within the industry to improve prevention.
• Finding the right balance between fraud prevention measures and maintaining a positive customer experience.
• Investing in upfront prevention, agent empowerment, and customer education.

The leaders emphasised the need for an integrated approach to Fraud and Anti-Money Laundering (FRAML) practices, which includes particular focus on conducting regular reviews of mobile device identities, customer behaviour, and cross-channel transactions.

Collaboration between customer service and fraud teams was highlighted as crucial for enhancing response strategies and protecting against evolving threats.

While AI and Large Language Models (LLms) are being explored to understand what they add to fraud detection and risk management, challenges in implementation and ensuring customer safety were noted.

The session highlighted the importance of a multi-faceted approach combining robust technology solutions, vigilant frontline teams, and ongoing industry-wide collaboration to prevent fraud while effectively maintaining a customer-centric focus.