Reflecting on a survey released today by Santander that addresses the UK payments market as well as fraud concerns. A BioCatch executive says the results indicate a need to change payment regulations in the UK.
BioCatch is a cyber firm that tackles the vulnerabilities in a financial institution’s fraud-prevention and anti-money laundering protocols. As it is estimated that global cybercrime will cost $10.5 trillion this year, the company has a pretty big mission.
Jonathan Frost, Director of Global Advisory for EMEA at BioCatch, says the Santander survey shows that the lack of consumer confidence stems from UK fraud controls, such as mandatory reimbursement for banks, being reactive rather than preventative – leaving victims open to emotional damage from being targeted by criminals. He believes that confidence in current systems must be fixed before new payment strategies are introduced into the economy.
“Payment fraud tops consumer concerns because the UK’s fraud controls remain reactive rather than preventative,” says Frost. “While the PSR’s mandatory reimbursement requirements have successfully returned millions to victims, they haven’t stemmed the underlying crime. The emotional damage to fraud victims happens long before compensation enters the picture, and lasts long after. If consumers feel exposed using the payments they already rely on, it’s no surprise they’re hesitant to adopt new payment methods.”
Frost notes the low level of consumer interest in new payment methods, as only one in five of those surveyed believes new payment technology is needed.
“This divergence shows where government, regulators and industry should focus. Consumers must have confidence in existing payment mechanisms before new ones are introduced. If we do not stem the flood of scams from tech platforms, it is hard to see how that confidence can be achieved.”