Tide says UK’s anti-fraud strategy is “nowhere near enough”, calls for an industry levy

Just days after the UK unveiled a new Fraud Strategy to combat the massive growth in web- and phone-based scams over recent years, business banking platform Tide has criticised the government for not going far enough.

UK home secretary Suella Braverman published the plan last Wednesday, which included the recruiting of 400 new specialist investigators and new powers for banks to delay payments for additional checking. 

The upcoming Financial Services and Markets Bill will also require banks to reimburse consumers who are victims of authorised payment fraud, not just unauthorised fraud.

“The target to cut fraud by only 10 per cent by the end of 2024 with another 400 police officers is nowhere near enough to combat the sheer scale of the problem and the damage done,” said CEO Oliver Prill in response to last week’s announcement.

Tide is calling for an industry-wide anti-fraud tax to be introduced in order to fund a more extensive zero-tolerance approach to financial fraud.

The fintech also wants the government to reconsider its decision to reimburse victims of authorised payment fraud, as it says this will only encourage fraudsters by making consumers less worried about making suspicious payments.

“Instead of guaranteeing returns to fraudsters through mandatory reimbursement, such money, alongside an anti-fraud tax, should be invested in fraud prevention and prosecution,” said Prill.

“Fraud causes enormous harm and puts stress on small businesses, consumers and financial institutions – and in the process, this damages the UK’s economy. This is why we are calling for a tax to fund action against what has become a terrible blight on the UK.’’