Financial Crime: Anatomy of a Scam

 

 

Much of the Singapore FinTech Festival has been dedicated to the innovations that are scaling financial efficiency, making money better, and improving financial access to all. Yet, criminal organisations are making use of these same innovations to target victims at scale and to disrupt the lives of ordinary people.

In this session, speakers delve into the important questions: What does a scammer look like? What does a scam look like? And what can we do in the community to interrupt organised scam operations and protect our friends and family and ourselves from being scammed?

 

1. Anatomy of a scam: How scammers operate

  • Scams thrive on emotional manipulation, speed, and exploiting gaps in global financial systems.
  • Victims often face fragmented reporting mechanisms, leading to underreporting and challenges in fund recovery.

2. Law enforcement and recovery challenges

  • Interpol's I-GRIP Initiative: A rapid intervention framework for stopping cross-border payments and enhancing communication between jurisdictions.
  • Call for financial institutions: Proactively assist victims by leveraging tools like I-GRIP, educating staff, and prioritising victim support over potential civil liability risks.

3. Role of financial and technology sectors

  • Financial institutions: Need stronger AML/CFT enforcement, improved collaboration with law enforcement, and voluntary suspension of suspicious accounts.
  • Technology companies: Accountability is critical—better laws and regulations are needed to compel platforms like social media and e-commerce companies to act against scams.

4. Education and empathy

  • Victim reporting drops off with multiple touchpoints; a one-stop reporting system is essential for creating a global response.
  • Empathy is crucial to driving public opinion and the legal, regulatory, and educational frameworks needed to support victims and reduce scams.

5. Innovations in technology and identity

  • AI and chatbots: Criminals are leveraging these technologies for sophisticated scams, requiring equally advanced tools to identify and counteract fraudulent activities.
  • Blockchain-based identity: A potential solution to authenticate users and reduce fraud without over-relying on traditional KYC systems.

6. Call to action: Building a unified community response

  • Community mobilisation: Drawing inspiration from initiatives like neighborhood watch programs to create a collective defense mechanism.
  • Policy and regulation: Enforcing stronger regulations and bringing unregulated platforms into the legal perimeter.
  • Support for responsible institutions: Encouraging regulated financial entities to manage crypto activities and exchanges to operate within best practices.

 

This session highlighted the need for empathy, innovation, and collaboration to combat scams. Everyone in the ecosystem, from financial institutions to tech platforms and law enforcement, must commit to protecting individuals and building trust. By fostering community action and regulatory alignment, we can create a safer, more resilient financial ecosystem.

 

Speakers:

  • Amanda Wick, Principal, Incite Consulting
  • Caroline Bowler, Chief Executive Officer, BTC Markets
  • Dina Mainville, Founder & President, Collisionless
  • Dr. Sungyong Kang, Criminal Intelligence Officer, INTERPOL Financial Crime and Anti-Corruption Centre

Moderator:

  • Rene Michau, Global Head, Digital Assets, Standard Chartered
 
 

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