Government consultation on unauthorised fraud doesn’t go far enough

Willem Wellinghoff, Chief Compliance Officer, Ecommpay comments on the consultation launched in July

“Last month the government launched a call for evidence on unauthorised fraud in the UK. This set out the scale of the problem: fraud now accounts for 46% of all crime recorded in the Crime Survey for England and Wales, an estimated £14.4 billion in economic and social cost. And whilst the 3.81 million unauthorised-fraud transactions in 2025 were down 5% year-on-year they still caused £703.4 million in losses, and an 11% rise in case volume. What is especially concerning is the fact that SIM-swap cases are up 1,055% since 2024.

“As the digital economy continues to evolve, it is clear that more needs to be done to protect individuals and businesses; the call for evidence is therefore welcome. However, I have a concern that it doesn’t go far enough. Our own Fraud Report, published earlier this year, echoed the government’s view that AI and digital advances are enabling fraudulent activity on an epic scale, and at a far greater pace than the solutions to tackle it.

“I firmly believe that the mandatory reimbursement regime was the correct policy direction with the latest fraud data bearing that out. The challenge is that the issue of platform-liability remains unresolved. Indeed, the 1,055% rise in SIM-swap fraud makes it more urgent, not less.

“Ecommpay will be making its submission to the call for evidence to provide our own insight on where we think the weaknesses and risks exist. At the centre of our response will be the view that reimbursement fixes the symptom after the fact. What is urgently needed are solutions to address the platforms where much of the fraud originates. We also believe that some fraud types have been overlooked (card-not-present (CNP) and acquiring fraud, for example).”