The Paypers has launched the Financial Crime and Fraud Report 2022, a comprehensive overlook of the current landscape of digital onboarding, fraud management, and financial crime in financial services.
Following the footsteps of its predecessors from past years, this year’s report looks to paint a complete picture of what is currently happening in the fraud and financial crime space, set in the backdrop of a world that tries to recover from a pandemic and an economy that is (and probably will continue to be) deeply affected by war.
The report’s mission is to highlight once again the importance of fighting fraud and financial crime, especially now, when fraud across the globe is increasing (as of the end of January 2022, according to the Office of National Statistics), money laundering-fuelled exploitation of vulnerable people continues to ravage the world, the sheer financial dominance that criminal drug organisations have over government bodies and institutions threatens the economic stability of entire states, forests are illegally cut down, money launderers and terrorist financiers continue to exploit legal loopholes. With just less than 1% of ill-used money being captured and restored, we must understand that there is still a lot to do to better our chances against fraud and financial crime.
Going beyond the report’s mission, this year’s iteration features experts, industry associations, top players, consultants, and financial institutions that have been co-opted to share valuable insights on crucial themes. To highlight some of the key topics found in the report, we mention: creating safe digital economies using IDV solutions, the role of digital ID in establishing trust and enhancing digital onboarding processes, BNPL fraud, corporate identity theft, the benefits of having a risk-based approach to prevent fincrime, regtech in the Metaverse and regtech trends, tackling fraud through collaboration, among many others. The Financial Crime and Fraud Report 2022 also features the latest technology advances for preventing fraud and the new opportunities that appear in tackling the challenge ahead. With the world going online these past few years, we have noticed record-breaking numbers of online fraud rates, with account takeover and identity fraud taking the lion’s share of the heap. APP (authorised push payment) fraud has surpassed card fraud in the UK as a result of the pandemic, while corporate identity theft increased by 46% in 2020.
Financial institutions stand to lose greatly unless they opt for fast, secure, and seamless online experiences for their customers. Experts argue that digital businesses can prevent that via built-in KYC (know your customer) features that will keep fraudsters at bay while improving customers’ journeys.
The report goes through the new dynamic the Metaverse brings, along with new digital customer journeys which are ripe for the take when fraudsters are concerned. Besides the Metaverse, the gambling and virtual sports betting world can benefit too from establishing stronger digital trust at the user journey’s beginning via identity verification, age verification, parent/guardian verification, among others, all of which can make for a clearer, more secure space for all users.
Since it is said to be easier to prevent than to treat, spotting financial crime before it happens trumps having to deal with its effects. Labour costs, increasing regulations, and evolving criminal threats are at the bottom of the high costs that come with financial crime compliance. As regulators continue to make laws stricter and fines more expensive, the report tries to explain the importance of AML (anti-money laundering) compliance, the risks of avoiding it, and the reasoning behind the wider financial crime prevention scene.
The report features an industry mapping of the key players in financial crime and fraud prevention, also revealing their backgrounds, core services, unique selling points, and business partners via in-depth profiles. This overview of the fraud solution providers aims to help merchants, fintechs, and payment service providers grasp the current market opportunities.
The Financial Crime and Fraud Report 2022 is endorsed by Consult Hyperion, KuppingerCole, and FINTRAIL’s FinTech FinCrime Exchange. You can download your free copy here.