Pay.UK, Visa, Synectics Solutions, and Featurespace have announced a partnership to fight fraud in UK payments using data analysis and predictive intelligence. Pay.UK has announced a significant collaboration in the UK payments industry to combat fraud by harnessing the collective power of data from multiple banks and payment service providers.

The initiative, currently in a pilot phase, aims to establish a secure overlay service for UK banks and building societies. The objective is to analyse money flows, utilise predictive intelligence, and proactively detect fraudulent activities, thus preventing crime before it occurs. The company has partnered with industry players including Visa, Synectics Solutions, and Featurespace to assess the potential benefits of this service before deciding on its further development.

As part of the pilot, each participating partner will receive historic transaction data from banks and PSPs under a pioneering data-sharing agreement. These selected suppliers will then build artificial intelligence and machine learning models to identify suspicious activities and compare them against known fraudulent behaviours. The long-term goal is to offer this overlay service as a new product to payment service providers, enhancing the fight against fraud.

This initiative builds upon Pay.UK's previous anti-fraud overlay tool, Confirmation of Payee, which was introduced in 2020. Ensuring data security is a critical aspect of the project. Pay.UK has worked closely with banks, PSPs, suppliers, and legal experts for nearly a year to ensure that all data is processed securely, legitimately, and within a strictly defined scope of use.

Ultimately, this service will be integrated into the New Payments Architecture, a transformative upgrade to the UK payments system. The New Payments Architecture, currently being developed by Pay.UK, aims to provide enhanced choice, speed, and security to individuals and businesses for all their money transfers within the UK. No more silos Kate Frankish, Chief Business Development Officer and Anti-Fraud Lead at Pay.UK, emphasized the significance of collaboration and knowledge-sharing in combating fraud.

She highlighted that fraud is a major challenge, causing substantial financial and emotional harm, with losses exceeding GBP 1 billion in the past year alone. Pay.UK's role as the operator and standards body for the UK's retail interbank payment systems, such as Bacs, Faster Payments, and the Image Clearing System for cheques, can position them to power payments, champion innovation, and offer choice in how people make transactions. Their services, including the Current Account Switch Service, Confirmation of Payee, and Request to Pay, allow individuals and businesses to securely receive salaries, pay bills, and conduct online and mobile banking payments.

In 2022, Pay.UK processed 10.8 billion transactions amounting to GBP 8.8 trillion. Their vision is to be the smartest way to move money, both presently and in the future, as they fulfil their mandate as a payment system operator. .