CashNews.co
A group of leading financial and technology companies, including AWS and Mastercard, has formed a new coalition in the UK to address economic crime using digital verification methods.
Participants in the coalition include major companies such as Amazon Web Services (AWS), Barclays, HSBC, Mastercard, and Revolut, among others. Regulatory bodies such as the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) are also involved.
The coalition aims to conduct research and testing to develop new ways of protecting businesses and consumers from fraud, which is a significant economic issue in the UK.
A focus on digital verification to combat fraud
Digital verification is seen as a crucial step in reducing economic crime. The coalition intends to create an improved digital identity for businesses that can be widely shared and understood across various sectors. This standardised and verified business information could improve data cross-referencing, authenticity checks, and fraud detection, contributing to a more secure financial environment.
CFIT’s coalition will engage in data-driven research to support the development of this digital verification system. A proof of concept is expected to be delivered by Lloyds Bank, NatWest Bank, and Monzo, which will assess the impact of a digital corporate ID on reducing the opportunities for fraudulent activities. The coalition plans to release a comprehensive report in March 2025, outlining recommendations for the implementation of digital verification solutions in the UK.
This initiative follows the successful work of CFIT’s previous coalition on Open Finance, which demonstrated the potential benefits of data-sharing technology for consumers and small businesses in the UK. The outcomes of that initiative highlighted the importance of secure financial data sharing for improving access to finance.
Industry leaders’ thoughts
Officials from CFIT emphasised the significance of the coalition’s work in combating fraud, highlighting the collaboration of industry experts in developing solutions to protect both organisations and consumers. Representatives from FCA expressed the regulator’s support for the initiative, noting the role of innovation and technology in addressing the evolving nature of financial crime.
Santander officials pointed out the importance of ensuring secure payment systems to build confidence among customers and businesses, aligning with the coalition’s objectives. Lloyds Banking Group underscored the potential of digital verification in fraud prevention and emphasised the necessity of cross-industry collaboration to achieve meaningful progress in this area.