The Centre for Finance, Innovation and Technology (CFIT) has formed a group to combat financial crimes.

The mentioned group, based in the United Kingdom, last Monday, September 2, announced that several technology and financial giants are interacting with it. In this case, it means companies such as Amazon Web Services (AWS), Mastercard, Lloyds Bank, Revolut and Santander. UK regulators, including the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR), have also joined this initiative. The goal of an anti-financial crime group is to find new ways to protect businesses and consumers from attacks by fraudsters.

In a press release published by CFIT, it is noted that digital verification is the main move in the framework of countering economic crimes. It was also underlined in this press release that the improved virtual business identity, which can be shared with all institutions and sectors and understandable to everyone, will help to resist fraudsters. Moreover, in the appropriate context, the assertion states that such an approach will form a safer economy.

An anti-financial crime group strives to offer standardized and verified business information. In this case, it means information that is interoperable with other financial systems for cross-referencing data, enhanced authenticity checks, and additional fraud detection tools.

It is known that Lloyds Bank, NatWest Bank, and Monzo will work together to test the concept. In this case, the impact of the digital corporate ID will be tested, including reducing the number of accounts to be offered to potential criminals. The relevant information is contained in the CFIT press release.

A report with recommendations on how financial institutions in the United Kingdom can implement digital verification solutions is expected to be released in March next year.

It is worth noting that recently the issue of countering fraud has become more relevant. In this context, there is what can be described as a negative form of manifestation of technological progress. Scammers have access to artificial intelligence. The use of appropriate technology has made their activities more sophisticated. Against the background of the corresponding challenge in the cybersecurity area, personal awareness of users is important. For example, a query in an Internet search engine, such as how to know if my camera is hacked, will allow anyone to get information about signs of unauthorized access to the device. It is worth noting that digital literacy is also a tool for countering cybercrime. Relevant knowledge should be updated periodically. In this context, it is important to pay attention to the fact that the methods of activity of criminals become more complicated as technology develops. Fraudsters introduce innovative solutions into their deception schemes. For example, using artificial intelligence, they imitate voices and even so-called digital copies of real people to deceive victims to make a profit. AI is also sometimes used to generate information materials containing narratives and semantic constructions designed to manipulate public consciousness. All mentioned negative scenarios of using artificial intelligence do not mean that it is harmful. Machine intelligence, like many other technologies, can be applied both for constructive purposes and within the framework of destructive approaches.

Max Spivakovsky, senior director of strategy and operations, global payments risk management and onboarding at Galileo, during a conversation with media representatives on the topic of security in the financial industry, said that banks should use both proactive and reactive strategies. Also in this context, he noted the importance of applying technological tools.

It is worth noting that ensuring security is an extremely important aspect from the point of view of reputation. A financial institution that is unable to guarantee the protection of customer funds will not be popular, since the risk of losing money is a logical barrier to interacting with a lender. It is also worth noting that the security of money in the global sense of the corresponding definition is one of the most important parameters for evaluating not only individual banks but also the financial systems of countries as a whole.

Asset protection decisions must also be timely. In this case, compliance of such solutions with advanced technologies is implied. The outdated approach in the context of ensuring financial security is not a generalized or conditional concept but belongs to what can be described as a category of specific practical characteristics. Money protection systems, the technology basis of which lags behind advanced solutions in the relevant industry, will not actually function, since in this case, it will not be possible to withstand new challenges and threats that constantly emerge.

At some point, a certain anti-fraud tool becomes the most popular, because it is the most effective in the fight against financial encroachments by criminals. However, over time, this approach remains in the past. This is because scammers are starting to use more modern technologies. Updated or fundamentally new solutions are needed to respond to the relevant threats.

An integrated approach in the security area for banks means a good reputation and protection from financial losses.