Samar Pratt
Samar Pratt
Global Financial Crime Compliance Advisory Leader
Capgemini
THE MANDATORY REIMBURSEMENT REQUIREMENT ISN ’ T JUST ABOUT REIMBURSEMENT ; IT ’ S ABOUT PREVENTION BECOMING THE NEW PRIORITY
Samar Pratt
How has the UK ’ s 2024 Mandatory Reimbursement Requirement spurred FIs to shore up security ? The mandatory reimbursement requirement is more than a regulatory shift . We see it as a catalyst for innovation . Financial institutions now have a direct financial incentive to invest in cutting-edge technologies like AI-powered fraud detection , behavioural analytics , and real-time transaction monitoring . This regulation isn ’ t just about reimbursement ; it ’ s about prevention becoming the new priority .
My hope is that this move could spark a new era of collaboration between financial institutions , payment services firms , social media platforms , telecom providers , and regulators . Shared databases of known scams , cross-industry alerts , and joint initiatives will be key to staying ahead of fraudsters . Collaboration might just become the next competitive advantage in the fight against scams .
One of the core challenges that financial institutions will face is striking a balance between enhanced security and a seamless customer experience . While stricter authentication measures and monitoring tools are table stakes , they must be implemented thoughtfully to avoid alienating customers or slowing down transactions .
This regulation also elevates APP scams from an operational issue to a boardroom priority . Financial institutions will need to rethink their risk management frameworks .
90 March 2025