Formica AI & FinTech Journal

P20 Calls for Public-Private Data Sharing Needed to Fight Fraud

Fraud levels are increasing, costing consumers in the US and the UK billions of dollars each year. To address this issue, Payments 20 (P20), a global voice for the payments industry, has released a report titled "Public-Private Data Exchange for Fraud Prevention: Best Practice Recommendations." The report calls for enhanced collaboration between the public and private sectors, using new methods and technologies to fight against increasingly sophisticated fraud. P20's recommendations include developing a protocol and platform for secure real-time data exchange, providing For Your Eyes-Only access to law enforcement Suspicious Activity Reports (SARs), incentivizing the expansion of AI machine learning technologies, allowing private sector access to authenticate government data, and creating a regulator-led forum for dialogue on combating fraud. The adoption of new privacy-enhancing technologies (PETs) and artificial intelligence (AI) could help protect consumer data and provide a further defensive arsenal against modern cybercriminals.

Scam Epidemic Hits Seven in Ten Brits

According to data from NatWest, more than seven in 10 UK adults have been targeted by scams in the last 12 months, receiving an average of three scam attempts each week. Scams through digital platforms, social media firms, and telecommunications companies make up the entirety of the top 10 financial scams Brits say they experienced this year, with phishing scams (37%), trusted organization scams (21%), and refund scams (13%) being the most prevalent. Stuart Skinner, fraud expert from NatWest, warns that with the increase in new digital tactics used by fraudsters, it’s becoming increasingly harder for consumers to spot, avoid and track. The scam epidemic is proving to be a digital turn off for some Brits, with 16% knowing someone who has refused to shop online because they are concerned about being targeted and one in ten (10%) knowing someone who won’t book their holiday online to avoid being scammed. Eight in ten of those polled are worried that impersonation fraud may become harder to detect in the next five years because of the rise in AI - with 18% saying they have replied to a message from impersonator in the past, initially believing it to be a friend or family member.?

The Pressing Need for Cybersecurity Portfolio Oversight in Finance

ACA Global emphasizes the pressing need for enhanced oversight of cybersecurity portfolios in private equity and venture capital firms. The current landscape is fraught with inconsistent and poorly governed oversight mechanisms, creating a gap between strategies and partner expectations. To bridge this divide, firms must establish a structured cybersecurity portfolio oversight program, conducting regular assessments of portfolio companies' cyber readiness throughout their investment journey. This proactive approach not only enhances value creation, potentially increasing exit valuations, but also attracts more investment from partners. It contributes to optimal ROI by mitigating risks, resource allocation, and vulnerability reduction. Additionally, a robust oversight framework yields financial benefits through collective evaluation and shared resources. Neglecting cybersecurity risks is no longer tenable, making a programmatic approach essential for portfolio protection.