fighting fraud together€¦ · changing the ‘pay first, check later’ approach in the public...

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Fighting Fraud Together The Strategic Plan to Reduce Fraud

ACFE European Conference

Stephen Harrison

Chief Executive

27 March 2012

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The Damage Caused By Fraud

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Fighting Fraud Together

• Published 12 October 2011

• Not a Government or law enforcement strategy

• Developed in partnership following wide consultation

• 37 organisations initially signed up, covering all sectors

Public

Private

Voluntary

Regulators

Law enforcement

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Our Ambition

By 2015 our country will be demonstrably more

resilient to and less damaged by fraud through:

Individuals, businesses, public and voluntary bodies

detecting and preventing more fraud

Law enforcement and other partners increasing risk

of disruption and punishment to organised and

opportunistic fraudsters, thus deterring potential

criminal offenders

“

”

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Fighting Fraud Together

Strategic Objectives

AWARENESS We will prevent more fraud by achieving a step

change in awareness of fraud among the general public and

organisations in the private, public and voluntary sectors and in

their ability to protect and safeguard themselves.

PREVENTION We will prevent more fraud through stronger

systems and controls in our businesses and public and voluntary

services.

ENFORCEMENT We will strengthen our response to be tougher

on fraudsters by disrupting and punishing them more efficiently

and effectively.

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Priorities

• Fraud awareness and prevention

Radical change in the sharing of fraud data within and across sectors

Fraud enablers

Improved targeting & consistency of messages based on the National Fraud Segmentation

Better understanding of the needs of small and medium-sized businesses

Reaching out to more industry sectors

Preventing Fraud in the Voluntary Sector

Enhancements to Action Fraud

Changing the ‘pay first, check later’ approach in the public sector

‘Designing out’ fraud risks in new policies, products, services and systems

• Strengthening the enforcement response

National Crime Agency and the Economic Crime Command

Policing response to fraud

Greater role for civil litigation

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Delivery

• Programme of Activity

Major, mainly cross-cutting initiatives

Which strategic objective(s) does the initiative support

Who is leading & supporting

When and what will they deliver

• Delivery overseen by new structures being formed under the Economic

Crime Coordination Board, the precursor to the Economic Crime

Command of the National Crime Agency

Economic Crime Prevention Group

Economic Crime Operational Group

Economic Crime Intelligence Group

• Crucial role for private and voluntary sector partners in setting and

reviewing the strategy as well as in delivery

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Priorities

• Fraud awareness and prevention

Radical change in the sharing of fraud data within and across sectors

Fraud enablers

Improved targeting & consistency of messages based on the National Fraud Segmentation to raise awareness and secure behaviour change

Better understanding of the needs of small and medium-sized businesses

Reaching out to more industry sectors

Preventing Fraud in the Voluntary Sector

Enhancements to Action Fraud

Changing the ‘pay first, check later’ approach in the public sector

‘Designing out’ fraud risks in new policies, products, services and systems

• Strengthening the enforcement response

National Crime Agency and the Economic Crime Command

Policing response to fraud

Greater role for civil litigation

Examples of Delivery

Awareness and Behaviour Change

• Awareness

Segmentation to identify

– Individuals

– SMEs

– Behaviours that put them at risk of fraud

– Preferred means of communicating prevention messages

Measurable changes in

– Awareness

– Behaviour change

Measure over time how better protected our society is from fraud

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The Segments - 7 core segments and 1 sub-segment

Segment 1

Avoiding risk but

lacking awareness

Segment 2

Avoiding risk,

exemplary behaviours

Segment 2b*

Avoiding risk but

vulnerable to offers

Segment 3

Avoiding risk but

still a victim

Segment 4

Risk takers seeking

financial gain

Segment 5

Risk takers,

demonstrating naivety

Segment 6

Risk takers and

sure of themselves

Segment 7

Risk takers and

poor behaviours

* Segment 2b is a sub-segment; part of Segment 2

16%

19%

4%

10%

21%

10%

10% 10%

14%

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Segment 1 (16% of UK Adults)

Avoiding risk but lacking awareness Moderate to wealthy females, high worth targets for fraudsters – “I wasn’t able to tell it was a scam”

Key Requirements: Communications should be via traditional methods focusing on what

fraud looks like, how it’s perpetrated and what steps to take that will

reduce the possibility of becoming a victim.

Segment 1 require education on the necessary and correct fraud

avoidance behaviours, particularly those that pertain to the online

environment.

Communication

Preferences

Experience, attitudes and awareness of fraud:

Who we are:

Attitudes &

Mindset

„fraudwise‟

Risk

Avoidance

Behaviours

Overall

Risk Low Risk /

Precautionary

Behaviours

Low Risk /

Low susceptibility

Low Risk /

Cautionary

Attitudes

High Risk /

Careless

Attitudes

High Risk /

Careless

Behaviours

High Risk /

High susceptibility

Age 36-55 Families Average & above

average wealth

Detached /

Semi-detached New to the internet

“e-converts”

Worried

ID Fraud

Identity Fraud

Property Investment

Scams

DO NOT have strong

passwords

Fear of Fraud DO NOT shield PIN

at the ATM

Lacking knowledge &

understanding

Direct Mail Newspapers

Face to

Face

Telephone

Total fraud loss*: £4.12bn

Holiday Club

Scams

Property Investor

Scams

Work at home

scams

Bank Card Fraud

£2.70bn £1.17bn £0.16bn £0.07bn

* Derived from the NFA’s Annual Fraud Indicator – figure represents the entire loss to the UK population and are indicative of the losses the segment may have suffered

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Segment 7

18-25 years old

Facebook composite video

Segment 1

36-55 years old

YouTube video

Segment 1

36-55 years old

YouTube video

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Segment 1

36-55 years old

YouTube video

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Segment 1

36-55 years old

YouTube video

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Segment 7

18-25 years old

Facebook composite video

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Priorities

• Fraud awareness and prevention

Radical change in the sharing of fraud data within and across sectors

Fraud enablers

Improved targeting & consistency of messages based on the National Fraud Segmentation to raise awareness and secure behaviour change

Better understanding of the needs of small and medium-sized businesses

Reaching out to more industry sectors

Preventing Fraud in the Voluntary Sector

Enhancements to Action Fraud

Changing the ‘pay first, check later’ approach in the public sector

‘Designing out’ fraud risks in new policies, products, services and systems

• Strengthening the enforcement response

National Crime Agency and the Economic Crime Command

Policing response to fraud

Greater role for civil litigation

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Examples of Delivery

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• New URL and re-design

Clearer and more authoritative link to law enforcement

• New Service Enhancements

Fraud ‘Information Reports’

‘Cyber crime’ reports

Phishing and Malware reports

• Already records more fraud/cyber crime than any single police

force

• Piloting police rollout intend to complete by March 2013

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• Action Fraud this financial year

600,000 unique visitors – 92% increase

140,000 calls

50,000 crime reports

12,000 information reports

12,000 phishing & virus reports in last 3 months of financial year

• National Fraud Intelligence Bureau

4,000 disruption activities

3,500 crime disseminations

200+ alerts and intelligence summaries

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Priorities

• Fraud awareness and prevention

Radical change in the sharing of fraud data within and across sectors

Fraud enablers

Improved targeting & consistency of messages based on the National Fraud Segmentation to raise awareness and secure behaviour change

Better understanding of the needs of small and medium-sized businesses

Reaching out to more industry sectors

Preventing Fraud in the Voluntary Sector

Enhancements to Action Fraud

Changing the ‘pay first, check later’ approach in the public sector

‘Designing out’ fraud risks in new policies, products, services and systems

• Strengthening the enforcement response

National Crime Agency and the Economic Crime Command

Policing response to fraud

Greater role for civil litigation

Information sharing - a strategic approach

• Information is our key weapon against the fraudsters

• Information sharing roadmap/architecture

• Three building blocks

More sector-specific intelligence hubs

– Follow examples of Insurance Fraud Bureau, HMRC’s CONNECT

Counter Fraud Checking Service

– Make data on known frauds more available across the sector-specific

hubs

More effective law enforcement response

– Building on the National Fraud Intelligence Bureau to disrupt and

bring fraudsters to justice

– Contributing to the development of the National Crime Agency’s

intelligence capabilities against serious, organised and complex

crime

Blueprint of roadmap and key components delivered by June

2012

Continued focus on ‘quick wins’

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More Information

• The National Fraud Authority http://www.homeoffice.gov.uk/agencies-public-bodies/nfa/

nfa.info@nfa.gsi.gov.uk

• Action Fraud

www.actionfraud.police.uk

• Fighting Fraud Together

The Strategic Plan

http://www.homeoffice.gov.uk/publications/agencies-public-bodies/nfa/fighting-fraud-tog/fighting-fraud-together

The Programme of Activity

http://www.homeoffice.gov.uk/publications/agencies-public-bodies/nfa/fighting-fraud-tog/fighting-fraud-together-activity?view=Binary

• The National Fraud Segmentation

http://www.homeoffice.gov.uk/publications/agencies-public-bodies/nfa/national-fraud-segmentation

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