The Financial Conduct Authority’s publication on 'Firms’ use of the National Fraud Database (NFD) and money mule account detection tools'
'Money muling allows the criminal misuse of the financial system and facilitates fraud. We share the key findings from our review of payment services and account providers’ use of the National Fraud Database (NFD) and a money mule account detection tool to tackle risks associated with money muling activities.'
'We observed that, after the initial onboarding, only one firm was conducting real time checks of their customers against the NFD. As a result, most other firms failed to detect when one or more new fraud markers were added to the NFD by other firms. We found that some of these new markers were not identified by the firms for extended periods. In one instance, this was for more than two years. Some of the firms only discovered these markers after the fraud had already occurred and they were notified by external sources'
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Cifas response:
'We warmly welcome the investigation into how the Cifas National Fraud Database is used by our members to manage the risk posed by money mules. The FCA’s report recognises the critical role that data sharing and intelligence plays in helping businesses to tackle this pervasive crime.
Money muling is a serious fraud threat which causes significant harm to individuals, businesses, and communities, exacerbating the UK’s fraud emergency. In the first half of 2024, cases filed to the NFD, indicative of money muling, increased by 11%, compared to 2023.
The FCA has found that all firms recognised the NFD as a crucial component of their financial crime and fraud controls, both in terms of customer onboarding and ongoing monitoring. The firms also agreed the NFD alerts them to known high risk individuals, enabling them to take swift action to mitigate the risk of harm where appropriate. All firms detailed a collaborative and supportive partnership with Cifas which assisted with the prevention, detection, and disruption of fraud.
In addition to the NFD, Cifas has created a range of tools to help reduce the impact of muling and financial crime including APP Victim Check, Vision, and Beneficiary Checks. Additionally, the ‘Don’t Be Fooled’ campaign, delivered in partnership with UK Finance, teaches young people and students about the risks and consequences of money muling, and supports schools with critical lesson plans and expert advice.
We welcome the opportunity to work closely with the FCA on how we continue to support our members to disrupt money muling, strengthen data sharing, adopt counter-fraud prevention solutions, and share best practices. Through collaboration, we can ensure mules no longer play a significant role in financial crime and protect the public and businesses from their harmful effects.'
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Vision: Real time alerts to changes in your customer fraud risk level
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Vision constantly monitors your customer data and sends real time alerts when your customer fraud risk level changes. Know instantly if your customers have committed first party fraud or money muling elsewhere, or if they’ve been a victim of fraud.
How Vision helps - If your customer data matches a case filed to the National Fraud Database (NFD) by one of our 750+ members, Vision will alert you. For example if a mobile number associated with another members misuse of facility filing is within your customer data you will be instantly alerted to investigate whether there is a potential fraud risk to your organsation.
Read more about Vision
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