New government proposal to make online payments safer
Plans to improve the protection for Brits around the UK were at the core of the Queen’s Speech at the state opening of Parliament in June.
Setting out the new government’s plans for the next two years, the speech focused on making the UK “the safest place to be online” with bills that would protect British consumers and businesses.
A new Digital Charter proposes to make the UK “the best place to start and run a digital business” and “the safest place in the world to be online”.
The speech announced the government’s intentions to work with tech companies, charities, communities, and international partners to develop the Charter. The clear intention is to seek to balance users’ and businesses’ freedom and security online, and strengthen the UK’s position as one of the world’s leading digital economies.
The government is optimistic about the opportunities on offer in the digital age but warns these opportunities also come with new challenges and threats. Indeed, we must seek to respond to them by providing better security in the new digital age.
Opportunities and Threats in the Digital Economy
The urgent issue facing the country today is maintaining a healthy economy as we prepare for a “smooth and orderly” Brexit. Therefore, the success of the digital economy is vital to the success of the whole economy, which in 2015 contributed £118 billion to the economy (over 7% of the UK’s Gross Value Added).
Tackling fraud is an integral part of setting finances back on a stable footing and ensuring businesses’ hard-earned money is used to drive growth. Online fraud is now the most commonly experienced crime in England and Wales, according to a report by the National Audit Office released in June. Here are just a few facts to illustrate the magnitude of online fraud in the UK :
- 623,000 actual fraud incidents recorded in the year ending 30 September 2016
- £10 billion estimated loss to individuals from fraud
- 103% increase in card-not-present (CNP) fraud, including over the Internet, between 2011 and 2016, to 1.4 million cases
- £130 million of funds held in banks that cannot accurately be traced back and returned to fraud victims
In response to this growing problem, the government wants to do more to enable private and public sector collaboration to fight online fraud, especially as the country moves toward a more digital economy. Technology businesses and the online commerce sector are being encouraged to develop better tools and practices to prevent consumers and businesses from falling victim to fraud and cybercrime.
How Can Merchants and Issuers Work Together to Make Online Payments Safer?
Proactive and preventative detection of fraud will help make the UK a safer place to do business online. Chargeback prevention is a fundamental part of this approach and will reduce the financial pressures on businesses.
Verifi offers a suite of products that helps businesses reduce and prevent fraud, by providing the necessary information to help validate fraudulent transactions at the right time, right place, and to the right people.
Whether you’re a merchant or issuer, find out more about our solutions tailored to your needs.