“Government is waking up to the seriousness of economic crime” – comment

Ahead of a new report being published by the Treasury Committee tomorrow, warning banks to do more to protect and reimburse consumers exposed to economic crime, please see the below comment from Peter Janes, CEO and Founder of secure payments solution Shieldpay. The report is in light of over £600 million being stolen from consumers in H1 this year, and outlines a number of proposals for banks to take to combat fraud.

Peter Janes, CEO and Founder of secure payments solution Shieldpay commented: “The Government is slowly waking up to the scale and seriousness of economic crime and the devastating impact it can have on people. The Treasury Committee’s findings are stark and should spark banks into action, action which will tackle the spiralling levels of fraud but should have come a long time ago.

“The industry has failed to implement increasingly advanced security measures. Confirmation of Payee was postponed earlier this year to the benefit of banks, but expense of consumers. Urging regulators to sanction banks that do not comply in March is a crucial change, any further delay simply facilitates thousands more people to be targeted by fraudsters. Proposed delays on first-time payments may see fraud levels drop, but this won’t keep pace with the demands of modern-day life. Real-time fast payments can be secure with the right checks and technology in place.

“Heightening awareness of fraud and the measures needed to prevent it is welcome but now action must be taken. Banks must integrate full identity verification, background checks and increasingly sophisticated technology – like digital escrow – into their systems and the Government and regulator must support this.”