In a significant leap forward for fraud prevention in the UK, Pay.UK, in partnership with industry giants such as Visa, Synectics Solutions, and Featurespace, has recently concluded a trailblazing pilot aimed at revolutionising how financial fraud is detected and prevented.
Groundbreaking results
The pilot, which ran over a three-month period, showcased remarkable outcomes with an average 40% increase in fraud detection capabilities while maintaining a 5:1 false positive rate.
Go deeper with GlobalData
This equates to potentially more than £112m ($142.35m) worth of fraud detected annually.
The collaborative initiative introduced a new overlay service designed for all UK banks and building societies, enabling them to analyse financial transactions and leverage predictive intelligence to proactively counter fraud activities.
Kate Frankish, chief business development officer and Anti-Fraud lead at Pay.UK, praised the pilot’s outcomes, stating:
“The positive results from this pilot demonstrate the importance of innovation and cross-industry collaboration in developing effective solutions to stay ahead of fraudsters and protect people in the ever-changing payments landscape.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataEnhancing predictive capabilities
The success of the pilot was rooted in its innovative approach to data sharing and machine learning.
Each partner utilised historic Faster Payments transaction data from participating banks and payment service providers to build machine learning models that effectively identified suspicious activities.
This proactive strategy showcases a potential shift towards a more secure and fraud-resistant financial ecosystem.
Rob Bevington from Synectics Solutions highlighted the technical aspects of their contribution: “Combining syndicated transaction data with transaction-specific features and point of application data produced a compelling solution to the scams problem.”
A unified front against fraud
One of the most significant aspects of this initiative is its whole-market approach, which promises equal protection for all UK residents, irrespective of their financial service provider.
This universal applicability is crucial in creating a robust defence against the rising tide of financial crimes.
Mandy Lamb, managing director at Visa UK & Ireland, emphasised the collective effort required in fraud prevention, stating: “Once fraud happens, the money is in the hands of the criminals so fraud prevention must be our collective goal, in the financial services industry and beyond.”
Martina King, CEO of Featurespace, added: “Reducing financial crime at scale requires an alliance of advanced technology and human collaboration. The success of this pilot proves that when the payments industry pools its immense resources, the world becomes a safer place to transact for everyone.”
Moving forward
The overwhelming success of the pilot not only demonstrates the efficacy of advanced predictive technologies in combating fraud but also sets the stage for broader adoption across the UK’s financial landscape.
Pay.UK plans to work closely with other players in the payments industry to share these results and explore ways to implement this service widely, aiming for a comprehensive rollout that could redefine consumer safety in the financial sector.
This initiative marks a pivotal moment in the fight against fraud, paving the way for a safer financial environment for all UK consumers and businesses.
