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TRANSCRIPT
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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%
i
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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/
• 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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