Syed Rahman outlines efforts by the banking, tech and telecoms sectors
Tech firms, British banks and telecoms companies are set to increase their data sharing in an effort to tackle fraud.
The Financial Times reported that the businesses have moved from a testing phase to conducting real-time exchanges of fraud indication data, such as unusual transactions and suspicious URLs. Those involved include the banks Barclays, HSBC, Santander and Lloyds, and companies including Amazon, Meta, Google, BT and Three.
The group behind the initiative, Stop Scams UK, say the data sharing is an attempt to create a safer environment for businesses and consumers online. Figures from the UK Office for National Statistics show there were an estimated 3.9 million fraud incidents in the year ending September 2024 - a 19% increase on the previous 12 months.
The group tried a data-sharing pilot programme two years ago involving very small amounts of information. But the programme is now far larger and utilises an automated system that can transfer tens of thousands of data points a day between the banking, tech and telecoms companies.
The programme, which is not linked to Meta’s data-sharing accord with NatWest and Metro Bank, is happening at the time of a huge increase in the numbers of scams targeting banks and their customers. A recent report by the commerce and digital economy media outlet PYMNTS, called “The Impact of Financial Scams on Consumers’ Finances and Banking Habits”, highlighted the particular damage caused by investment scams and romance scams.
Data protection law does not prevent organisations, such as banks or tech giants, sharing information. They must do so, however, in a responsible, fair and proportional way. It is hoped that sharing this data will help organisations assess the risk and ensure extra checks are in place to tackle fraud.
