// EXPERT PROFILE // strategy . Implementing a multi-layered fraud prevention strategy increases identity assurance and trust at each step : starting with frictionless data checks , then moving to document verification , biometric verification and mitigating further risk with PEPs and sanctions checks . Each layer or additional solution builds additional protection and additional trust between organisation and consumer . Such a multi-layered approach can thus enable organisations to mitigate the risks of APP fraud , and therefore , reduce the potential costs of reimbursement .

Other advantages of a robust fraud prevention strategy include offering reassurance to customers that the business is serious about protecting them from fraud ; helping prevent the most vulnerable customers from being targeted ; ensuring the right services and payments are sent and received by the right people ; optimising operations and increasing transaction speeds and efficiencies .

Solid Know-Your-Customer ( KYC ) processes also play a crucial role in cybercrime prevention , reducing friction for genuine customers and detecting high-risk or unusual behaviour .

In KYC processes , there will always be a need for human-led interventions , where automated solutions cannot yet provide ample protection . Specially trained agents can provide additional layers of anti-cybercrime support – for example , people can be trained to spot signs of social engineering , such as distress and nervousness in customers . This human expertise paired with the latest AI-powered fraud detection mechanisms generally provides the best defence against social engineering fraud . These successes have been observed in mainland Europe , specifically in countries such as Germany , for around a decade . Hence , the UK may need to look towards those markets and deploy expert-led video identification to catch instances where a genuine person is being coerced .

The role the new Labour government will play

While the new APP fraud regulations were put forward by the old Conservative government , the plans remain largely unchanged . The Labour manifesto pledged to introduce a ‘ new , expanded fraud strategy ’, recognising the urgent need to tackle what has become the UK ’ s most common crime . Based on this , we can expect that fraud , as well as APP fraud , is high on the new government ’ s agenda .

Rather than seeing major pushback from the government , the new regulations are subject to many critical voices from within the payment industry . Over the past few months , individual stakeholders and associations have been speaking out , demanding delays to the regulations , clarification of details and overall changes to the requirements .

Key criticisms included :

• the October deadline , i . e . many financial providers will not be ready for the regulations

Ellie Burns , Head of Product and Customer Marketing , IDnow

IN KYC PROCESSES , THERE WILL ALWAYS BE A NEED FOR HUMAN-LED INTERVENTIONS , WHERE AUTOMATED SOLUTIONS CANNOT YET PROVIDE AMPLE PROTECTION .

Intelligent SME . tech

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