Payment Industry Report Calls for Collaboration to Combat the Problem


Payments 20 (P20) is calling on the industry to work together to combat payee scams which have increased exponentially since the start of the Covid-19 pandemic in 2020.

P20 is an advocacy group established to focus on payments globally with the aim of collaborating across borders on the major issues facing the payments industry.

The organisation brings together members from across the industry including banks, governments, regulators and infrastructure providers to collaborate and share thinking, intelligence across borders on combating fraud and criminal transactions, cyber security and financial inclusion.

The report published this month, ‘Best Practice Approaches for Combating Payee Scams’  highlights the increasing number of payee scams, such as romance scams, purchase and investment scams across the globe with recommendations to mitigate the issue.

Fraud losses from payee scams are a global problem and continue to proliferate around the world. Romance scams, where fraudsters convince payees that they are offering affection or should be trusted with financial matters, are a significant problem during Covid lockdowns, reaching £311.8 million in the UK alone last year.

This report evaluates a range of options to help protect customers and banks and reduce the ability of fraudsters to benefit from generic weaknesses in the ‘push payment’ market. Key to this is collaboration across borders and a call for development of a global approach to combating payee scams.

Central to the recommendations are improving customer education and awareness, developing better fraud data, detection systems and prevention techniques, collaboration to standardise definitions and creating a framework for deeper collaboration across the payment industry.

The report was compiled with input and analysis by experts from a range of payment industry partners and advisors including Mastercard, The Clearing House, J.P. Morgan, NatWest, McKinsey & Co., Hogan Lovells, Fiserv and Featurespace.

The FCA has released figures on what happens to funds garnered by fraud and criminal activity. Each week they estimate that:

  • Over $70 million is raised to finance terrorism.
  • Over $6 billion is generated through the sale of illicit drugs.
  • Over $30 billion is laundered, which only 1% is intercepted and seized.

Duncan Sandys, Chief Executive Officer at P20, said: “Payee scams were a growing problem before the advent of COVID-19, but the pandemic has seen incidents rise at an alarming rate. As the world moved overnight to operate remotely and digitally, so did the fraudsters.

“Governments, regulators and the industry approach this issue differently and although there are some common elements, there is little harmonisation. For instance, the UK has been collecting and publishing data since 2017 and so is able to release very detailed statistics on the pandemic’s effect on various payee scams.”

Steve Ledford, Senior Vice President for Product and Strategy at The Clearing House, said: “As we developed these recommendations, we began using our findings in real time in our own payment systems and so consumers and the industry have begun to benefit before the ink on this report was dry.”

Click here to read the full report.

Most recent episodes

Becoming a Real-Time Treasury Champion

HSBC experts Thomas Halpin and Suraj Kalati take a seat with TMI Editor Eleanor Hill in the virtual TreasuryCast studio to determine why real-time treasury matters now more than ever. Amongst a wealth of real-time...


TIS EPO: Reimagining the World of Enterprise Payments

TMI's Eleanor Hill was delighted to invite Joerg Wiemer, Co-Founder and Chief Strategy Officer (TIS) to discuss the concept of Enterprise Payment Optimization (EPO), a reimagining of how organizations can achieve...


To Step Out or Not to Step Out? That is the Question

Spotify's Senior Treasurer, Niklas Muhrbeck, alongside two experts from J.P. Morgan Asset Management, Jemma Clee and Amir Mota, provides an overview of step-out strategies for corporate investors, and advice on how...


Advancing Digital Treasury: Next Steps

TMI’s Eleanor Hill welcomes Rowan Austin, Conor Maher and Nick Pedersen (NatWest) into the TreasuryCast studio to determine how treasurers can move beyond a basic digital treasury landscape towards a more efficient...


Real-Time Cash and Liquidity: Mission Possible

Eleanor Hill (TMI) is joined by Jeroen Brieffies (FrieslandCampina) and Dory Malouf (Kyriba) to consider the relevance and value of real-time cash and liquidity data for treasurers. Our guests tackle the...


NYCE 2021 Sneak Preview: What Can Treasurers Expect?

TMI's CEO Robin Page is joined by a distinguished panel from TMANY (The Treasury Management Association of New York). In this podcast, Seth Marlowe (Synovus), David Miller (Hunt Companies) and Tim Hesler (New York...


Preparing Treasury for the Next Crisis

TMI's Eleanor Hill welcomes Jared Smith and Craig Ramsay (HSBC) into the TreasuryCast studio to cover the lessons that corporate treasury teams have learned from the current health crisis, and how they can apply this...


Treasurer’s Roadmap to Becoming an ESG Role Model

A panel of ESG experts - Elina Todorova (Tideway London), Kate McGrath (Aberdeen Standard Investments) and Noemie de la Gorce (S&P Global) - advise TMI's Eleanor Hill on best practice ESG learnings for corporate...


Diversity and Teamwork: Building Treasury Relationships

The merger process of Willis Towers Watson has cultivated an environment of constant change for the firm’s treasury team. We were delighted to invite Frances Cavanagh and Rivka Attal (WTW) to outline the...


Achieving Treasury Centralisation with In-House Banking as a Service

Catherine Hill (Salesforce), Christof Hofmann and Dirk Kronshage (Deutsche Bank) join TMI's Eleanor Hill to consider how treasury centralisation can be successfully achieved...