Fraud isn't a new phenomenon, but in recent years it's gained momentum, causing anti-fraud professionals and experts to look for ways to strengthen the fight against fraud and economic crime.

In particular, the rise in APP Fraud has been alarming, now representing 75% of all digital banking fraud. Fraudsters are continually re-inventing themselves, using new tactics and technology to target victims. Counter-fraud leaders must do the same.

But in order to win this war, it's important for everyone to do their part - and this includes those who become victims, too.

Gross Negligence

It's important to be delicate with the phrase 'gross negligence', when applying it to victims of fraud.
Many victims of fraud feel the stigma that is attached to being scammed, left feeling ashamed and somehow at fault. In some tragic examples, victims have fallen into depression and suicidal thoughts as a result.

It is completely clear that fraud is not the fault of the victim. Fraud is perpetrated by criminals who are entirely responsible for the fall-out. But nevertheless, consumers must become aware of the signs of fraud in order to stop it from happening to them.

Gross negligence is not simply an action taken thoughtlessly; it's applied to a situation where a customer has knowingly authorised a payment, for example, to leave their account. Even then, if the extent of a scam is sophisticated and the customer was led to believe that they were authorising a legitimate payment, it cannot be called gross negligence.

However, if there are clear signs that a payment request might not be legitimate, and the customer has not taken due care to check out significant red flags before going ahead, then this could be called gross negligence. What providers need to be aware of is that the bar for this is quite high when being investigated by regulators. Banks, payment providers and other financial institutions must all have rigorous processes in place to ensure they are checking these payment authorisations, too.

If you're not sure – talk to somebody about it

With the world of payments having developed rapidly over the last few years, making it easier and quicker than ever to make payments using phones and 'one-click', it can be easy to disengage with what we are actually doing when we authorise a payment. A lot of the time, consumers are making payments whilst also doing other things, or on the go.

We now have the ability not to think too much about it when making payments, and while this can work well for businesses, it also plays in to the hands of fraudsters, too.

So in order to stop themselves becoming victims, consumers need to pay attention to anything that doesn't feel right.

Double-checking things and speaking to their payment provider or bank if there are even the slightest red flags, should become part of a consumer's thought process.

Stop! Think Fraud

Consumers aren't being left to deal with this problem alone. Earlier this month, a national campaign against fraud entitled Stop! Think Fraud, was launched. The public awareness campaign is backed by leading counter fraud experts, government agencies, law enforcement and businesses in the technology, financial and retail space, who will unite to give one clear and concise message of advice to the public.

Instead of mixed messages and various different campaigns in different sectors, Stop! Think Fraud will be the one clear set of advice which will limit confusion.

The campaign will include an online fraud hub and adverts using various mediums in public settings. Most importantly, the campaign will empower people to protect themselves.

Home Secretary James Cleverley said:

"I encourage everyone to stop, take a moment to think about fraud, and share this messaging far and wide."

This blog was written in collaboration with Claire Maillet: Counter-Fraud Expert and PhD Researcher, University of Portsmouth

Claire is a multi-award-winning counter-fraud expert and has worked in financial crime prevention for 10 years. She has held previous positions at Amazon, Cifas, World First, Jaja Finance and most recently Ziglu as Director of Financial Crime Operations.

Last year, Claire was shortlisted for several accolades, including "Woman of the Year" and "Head of Financial Crime of the Year". Notably, she was honoured to be a four-time TECA finalist in 2023; the greatest number of shortlistings for an individual in the history of the Awards.

In her spare time, Claire undertakes a PhD in Criminal Justice Studies at the University of Portsmouth, looking at insider fraud within FinTechs, which she is due to complete in 2026. She is a seasoned national and international public speaker, speaking about internal and external fraud, disability and inclusion.
In January 2024, Claire launched 'fraudible' - a video podcast combining fraud practitioner experience and academic fraud theory.