Latest news with #anti-fraud
Yahoo
5 days ago
- Business
- Yahoo
UK banks urged to beef up anti-fraud systems for international payments
UK banks and payment firms have been urged to strengthen their anti-fraud systems for international payments after a rise in scammers tricking people into sending money abroad. After years of horror stories about people losing huge sums through bank transfer scams, rules came into force last October requiring UK banks and other payment firms to refund those who have been manipulated into sending money to criminals. This week, industry data revealed that the number of cases of this type of crime had fallen to its lowest level for five years. Related: 'Remote purchase' fraud in UK surges as customers tricked into disclosing passcodes The frauds are known as authorised push payment (APP) scams. The number of cases fell by 20% last year to just under 186,000, said the banking body UK Finance, which issued the data. In 2023, there were more than 232,000 cases. The decrease is thought to be down in part to the new rules, plus other initiatives and greater awareness. But the figures came with some stings in the tail. While the number of cases fell substantially, the total amount lost to APP fraud decreased by just 2% to £450m. In other words, as UK Finance put it, 'fewer people are handing over bigger sums of money'. There was also a 'notable increase' in APP scams involving international payments, in which criminals trick people into sending money outside the UK. This is not covered by the new rules, which apply to money that is moved from one UK bank account to another. This week's data revealed that international payments accounted for 11% of APP scam losses in 2024 – almost double the 2023 figure. Rocio Concha, the director of policy and advocacy at Which?, said: 'Fraudsters are constantly evolving their tactics, so it is disheartening but unsurprising to see a rise in the number of cases in which scammers trick their victims into sending money abroad.' As these payments are not covered, the victims are very unlikely to get their money back. 'Banks and payment firms should enhance their anti-fraud controls for international payments, and the independent review of the mandatory reimbursement scheme in October should take note of these emerging trends,' said Concha. Most of the APP frauds reported last year (71%) were purchase scams, in which the victim hands over money for goods or services – perhaps a car, a mobile phone or gig tickets – that either do not exist or never arrive. When it comes to the total amount of money lost, investment scams dominate. Typically, the criminal convinces victims to move their money to a fictitious fund or pay for a fake investment. Cryptocurrencies often feature heavily. More than £144m was stolen via this type of APP fraud in 2024 – up 34% on 2023, despite a sizeable fall in the number of cases. UK Finance is itself not immune to being targeted by scammers. This week there was a prominent warning on its website saying: 'We are aware of a potential scam involving people being offered loans for an upfront fee by an individual posing as a representative of UK Finance.' The organisation doesn't offer any financial products, 'and anyone claiming to provide such products on our behalf is fraudulent,' it said. Meanwhile, the payments firm Visa this week revealed four fraud tactics that it said had been gaining ground across the UK and Europe in recent months. They are: Fraudsters offer high-value goods – such as exercise machines – at low prices. Shoppers are tricked into handing over the one-time passcode banks send customers to authorise transactions. These are then used by criminals to carry out fraud. Fake apps impersonating trusted organisations are stealing personal and financial data. Scammers get hold of people's card details via phishing and then link these to criminal-controlled digital wallets. They then use software that allows them to make contactless payments using these details remotely from anywhere in the world. Generative artificial intelligence is increasingly being used to create convincing fake IDs and open fraudulent accounts. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Irish Times
23-05-2025
- Business
- Irish Times
Revenue seizes thousands of e-bikes and e-scooters worth estimated €4.5m
Thousands of e-bikes and a small number of e-scooters have been seized in Wexford with an estimated value of €4.5 million. As part of an operation targeting the illegal importation of e-bikes, Revenue officers executed search warrants at two warehouses in the county in recent days. During these searches, 4,000 e-bikes and a small number of e-scooters were discovered, alongside ancillary items and spare parts. It is believed the bikes and scooters are part of an international smuggling operation being conducted across the EU . READ MORE The vehicles, which are believed to have been destined for sale on both the national and wider EU market, are estimated to have a retail value of €4.5 million, according to Revenue. A Revenue spokesperson said a number of individuals are assisting with inquiries. [ Michael Gaine homicide case: The full story so far Opens in new window ] [ What does Trump's 50% EU tariff threat mean for Ireland? Opens in new window ] The operation was conducted with the EU's anti-fraud agency 'to protect the EU's financial interests against what is believed to be part of an international smuggling operation being conducted across the EU'. The spokesperson added: 'These seizures are part of Revenue's ongoing campaign targeting the illegal importation of products into the State and the wider European Union. If businesses, or members of the public, have any information regarding smuggling, they can contact Revenue in confidence on 1800 295 295.'
CNN
17-05-2025
- Business
- CNN
Social Security drops controversial anti-fraud review amid growing claims backlog
A month after instituting a controversial anti-fraud policy that sparked widespread concern among senior citizens, the Social Security Administration has quietly dropped a key piece of the measure. The agency will no longer hold retirement benefit applications for three days to check for fraud, according to an email sent to workers and reviewed by CNN. The decision comes as the backlog in retirement benefit claims has swelled to nearly 575,000 applications, and employees, whose ranks have thinned from downsizing efforts, are being encouraged to work harder to process those claims. Pushed by Elon Musk's Department of Government Efficiency, the anti-fraud policy was revised several times before being implemented amid an outcry from advocates for senior citizens and people with disabilities. Originally, the agency wanted to bar applicants from filing for benefits over the telephone, arguing that it could not do sufficient identity verification. Instead, people would have had to confirm their identities through their online 'my Social Security' account or visit a field office to complete the claim in person. Advocates feared that the policy would make it harder for many folks to file for claims, particularly if they are not computer-savvy or live far from the agency's offices. The policy change, along with a related one ending beneficiaries' ability to update their direct deposit information over the phone, prompted senior citizens and people with disabilities to flood the agency's phone lines and field offices with concerns. Many thought they had to prove their identities to continue receiving payments or had questions about the new procedures. Less than two weeks later, Social Security announced that the anti-fraud policy would only apply to those filing for retirement, survivors or family benefits over the phone, and its rollout would be delayed by two weeks to April 14. The phone claims would be subject to a fraud review, and if irregularities were detected, applicants would have to go to a field office to prove their identity. Asked about the latest change in policy, a Social Security spokesperson said the agency 'continues to refine the anti-fraud algorithm to flag only the claims with the highest probability of fraud. Continuous improvements will ensure timely processing of claims while protecting beneficiaries from fraud.' However, the review process only found two cases – out of more than 110,000 claims – that had a high probability of being fraudulent, according to an internal document obtained by Nextgov/FCW, which covers technology in federal agencies. Fewer than 1% of claims were flagged as potentially fraudulent. What's more, the anti-fraud checks delayed the processing of retirement claims by 25% and led to worse customer service, according to the May document. 'It created a problem in customer service where one didn't exist, and it didn't do anything to prevent fraud,' said Kathleen Romig, director of Social Security and disability policy at the left-leaning Center on Budget and Policy Priorities, who worked at the agency during the Biden administration. As of mid-May, Social Security had nearly 575,000 pending retirement claims, with about 140,000 of them languishing for at least 60 days, according to an email from Stephen Evangelista, Social Security's deputy commissioner for operations, that was sent to employees and viewed by CNN. He noted that the agency is receiving a record number of claims this year for several reasons, including the peak wave of Baby Boomers hitting retirement age and a law passed by Congress that beefed up Social Security benefits for nearly 3 million federal, state and local workers. The backlog began increasing swiftly last fall, shooting up from fewer than 350,000 pending claims in September to nearly 600,000 pending claims in April, according to Social Security data posted online. Evangelista urged workers in the field offices and another unit to 'do their very best' to increase the number of retirement claims they clear every day by at least 10% for the rest of May. 'I am calling for a sprint – a focused, concerted effort in all offices beginning today and lasting through the end of May – to address this growing backlog of pending retirement and survivor claims,' he wrote. The missive did not go over well with many employees, said Joel Smith, president of the American Federation of Government Employees Local 3184, which represents workers in nearly 100 agency offices across the South and Southwest. Social Security is in the midst of culling about 7,000 workers, or roughly 12%, from its staff – offering two rounds of deferred resignation offers, as well as other buyout and early retirement incentives. Multiple field offices have lost sizeable shares of their staff. And while the agency is reassigning about 1,000 employees from headquarters and regional offices to work in field offices and other mission-critical units, it will take time to train them. 'Employees find it to be another sign of disrespect from an out-of-touch agency leadership,' Smith said of the directive. Workers 'weren't looking for another demotivational email from an agency leadership that cut their telework, encouraged them to quit and created an unnecessary backlog.'
