BSI (British Standards Institution) has launched a code of practice that gives recommendations for those businesses protecting vulnerable customers from financial harm that might occur as a result of fraud.
The code of practice, PAS 17271: Protecting customers from financial harm as a result of fraud or financial abuse, gives guidance on how to recognise customers who might be at such risk; and how to assess the potential risks to the individual. This can include those in vulnerable circumstances, either temporarily or permanently, which can affect their ability to communicate, understand, make decisions, or take actions that are in their best interests.
The guidance distinguishes between fraud – a criminal act involving deception intended to result in financial gain, such as ID theft or online scams – and financial abuse. Financial abuse is the criminal act of controlling a person’s property, money, pension book or other valuables intended to result in the financial or personal gain of the abuser, typically carried out by people in a position of trust, such as partners, relatives, friends or carers.
As BSI says, inadequate systems and procedures that fail to identity, inform, protect and support customers can make it more likely that vulnerable customers are susceptible. The code of practice includes a checklist and covers organisational principles, culture and strategy. In cases where fraud or financial abuse has already occurred, PAS 17271 gives guidance on how to help and support customers, and how to minimise risks.
Anne Hayes, Head of Governance and Resilience at BSI, said: “Financial institutions have a responsibility to assist the vulnerable. Anyone can be a victim of fraud or financial abuse – but we know from experience that some people are uniquely at risk. Individuals with a history of financial problems; learning difficulties; those recovering from addictions; and the young are just some of the diverse types of people most susceptible. PAS 17271 was created to help organizations protect customers from financial harm. The bottom line is that best practice in systems and procedures can help prevent and detect fraud and financial abuse.”
And David Lowe, Head of Fraud Prevention at NatWest said: “Being victim of fraud can be devastating and sadly we are seeing the complexity and sophistication of these crimes increase. We know that it is our collective responsibility to support consumers and help prevent them from falling victim to fraud which is why we took the initiative to sponsor a BSI PAS in 2016. The BSI PAS provides the best platform to join forces with the government, other banks and industry partners to work towards a common goal.”
About the standard
The development of Pas 17271 was sponsored by NatWest, with a steering group of financial institutions and consumer bodies. Involved in the development of the PAS were: Barclays; Building Societies Association; Consumer & Public Interest Network; Financial Fraud Action UK; Home Office Joint Task Force; KMB Telemarketing Ltd; Metropolitan Police; National Trading Standards; Office of the Public Guardian; Santander UK plc; Scottish Business Resilience Centre; The Co-Operative Bank plc. Visit www.bsigroup.com.
