Transparency data

Joint Fraud Taskforce board minutes: 9 November 2018

Published 23 July 2021

Attendees

• Richard Riley (chair) (Home Office)
• Owen Rowland (Home Office)
• Karen Baxter (CoLP)
• Alix Newbold (CoLP)
• Mike Haley (Cifas)
• Simon Fell (Cifas)
• Scott Reeve (Cifas)
• Katy Worobec (UK Finance)
• Jim Winters (Barclays)
• Lee Bradley (Lloyds)
• Alasdair MacFarlane (RBS)
• Mark Haddon (Tesco)
• Ben Wilson (MasterCard)
• Howard Lewis (MasterCard)
• Melissa Dring (NTS)
• Mark Cheeseman (Cabinet Office)
• Dominic Gilchrist (Cabinet Office)
• Jeremy Tizard (NECC)
• Rob Gruppetta (FCA)
• James Martin (BRC)
• Sheila Stewart (Met)
• Nick Stevens (Met)
• Jonny Medland (HMT)
• John Appleton (HMT)
• Jai Krishnan (Home Office)
• Katherine McNulty (Home Office)

Apologies

• Louise Baxter-Scott (NTS)
• Neil Masters (NTS)
• Donald Toon (NCA)
• Sarah Moore (RICU)
• Stuart Skinner (Nationwide)
• Sara Vaughan (Victim Support)

Agenda item 1: JFT 2.0 proposal

1. Richard Riley (Chair, Home Office) opened the meeting and set out that economic crime, of which fraud forms part, is one of the Home Secretary’s priorities. The new SOC strategy was launched on the 1st November, leading with our approach to tackling dirty money and the enablers of economic crime. It sets the strategic intention in this area. The key message for fraud is on prevention and taking demand out of the law enforcement system. Richard pointed out that our response to fraud is under the microscope, both from media and parliament. It was recently examined by the Home Affairs Select Committee (HASC). It is important that the JFT focuses on the right things, and delivers against them.

2. Richard invited Jai Krishnan (Home Office) to present the proposal for a reset JFT as developed through workshops with members of the Management Board. Jai opened by stating that getting the resourcing and accountability arrangements right were key to a successful JFT.

3. Jai took the group through the accompanying set of slides on JFT 2.0. The descriptor of the group remains broadly as was, but with the addition of other private organisations (beyond the banks). The JFT previously had 3 key objectives, and 5 workstreams. The workshops have developed a new structure with 5 strategic objectives and 3 workstreams on: vulnerabilities, disruptions and legal and regulatory barriers.

4. Jai explained that, given the multiplicity of senior governance boards on economic crime, the Home Secretary chaired JFT Oversight Board should be abolished with the Management Board taking responsibility for monitoring delivery of JFT projects. However, the JFT should be able to escalate issues to the Private Sector Steering Group and the Economic Crime Delivery Board.

5. On membership of the JFT Management Board, Jai outlined the proposal to extend membership to other sectors, e.g. Telecoms and ISPs. However, this would make the Management Board large, and possibly unwieldy, so the proposal is to carve the group into core and associate members. Jai also highlighted the workshops’ recommendation for the chair of the JFT Management Board to rotate, with the next chair coming from the private sector.

6. Richard then opened the discussion up to the group, asking if the proposed aims, objectives and outcomes are right, and whether they are ambitious enough. In discussion the following points were made:

• a. Mike Haley (Cifas) thought the structure proposed was right but the work plan needed to be informed by a collective understanding of the threat – and also an understanding of the gaps in our threat picture.
• b. Katy Worobec (UK Finance) considered the JFT should focus on the things that wouldn’t otherwise be achievable by one organisation. But that we need to be disciplined to ensure we do fewer things, better.
• c. Jim Winters (Barclays) pointed out that the private sector is changing, and expanding. He also noted that our speed of response needed to match the speed of the criminals.
• d. Lee Bradley (Lloyds) considered the JFT could make some quick progress by enhancing information sharing gateways.
• e. Rob Gruppetta (FCA) highlighted the success of the Joint Money Laundering Intelligence Taskforce (JMLIT) and posed the question as to whether something similar was needed on fraud. Or whether the NECC would take on that role?
• f. Karen Baxter (CoLP) considered a number of different approaches were needed – from the strategic to the tactical, allied to a 4P response.
• g. Jeremy Tizard (NECC) advised that the NECC will not be looking at volume crime, but will be looking at SOC. Jim highlighted the network analysis that Vocalink have done which indicates some fraud, particularly the money mules networks, is organised. Tackling organised fraud should have an impact on all fraud.
• h. Alasdair MacFarlane (RBS) suggested that the JFT needs to think more creatively in developing its programme of work.
• i. Mark Cheeseman (Cabinet Office) suggested that a common understanding of the numbers was needed, with those top level figures (e.g. estimated number of frauds) our call action. We should assess the success of the JFT on the impact of the initiatives it has delivered.
• j. Karen reminded the group that whilst numbers are important we should also use qualitative assessments and professional judgements to inform our assessment of the JFT’s performance.
• k. Mike suggested that we needed to quickly bring together the figures and data we have available to build a picture of the threat and vulnerabilities.

Action 1:

Cifas and CoLP to bring together the different sets of data on fraud to develop a single view of the threat and to inform which vulnerabilities the JFT should focus on addressing.

Action 2:

All to contribute metrics that can be used to assess the JFT’s progress and performance.

7. On governance, Richard stated that we had received a number of recommendations for Mike Haley (Cifas) to take over chairpersonship of the JFT Management Board. Richard endorsed this recommendation, stating that it was now the right time for a new chair. The JFT chair should have a public persona that a government official was unable to provide. He then invited comments from the group on the proposed governance arrangements.

8. Mike agreed to take on chairpersonship of the JFT Management Board. However, before doing so he wanted clarity on whether he would be expected to clear public JFT announcements with Government. He asked the group for their support and shared accountability in delivering JFT initiatives and for consistent high-level attendance to these meetings, but from a smaller group. As chair he would be unable to represent Cifas at these meetings, so Cifas should continue to get a separate seat on the board.

9. The group all supported Mike’s nomination for chair.

10. The group then had a brief discussion on resourcing and the following actions arose:

Action 3:

Lee Bradly (Lloyds) to look into how we might unlock some free consultancy resource.

Action 4:

Mike Haley (Cifas) to explore possible options to bring Telecoms, ISPs and CSPs into the JFT.

Agenda item 2: JFT future work plan

11. Alix Newbold (CoLP) outlined the work they had done to map the systematic vulnerabilities that facilitates fraud. They had used MoRiLE principles to assess the vulnerabilities and identify priority areas. Alix noted that the assessment was based on professional judgment rather than purely data driven. She also pointed out that this piece of work should inform what projects the JFT takes on.

12. Jim Winters (Barclays) proposed a different way of ordering the work plan based on three areas of work on: money mules; data breaches; and work with Telecoms to close vulnerabilities in the telephone communications network.

13. James Martin (BRC) suggested we needed a subtle approach when engaging Telecoms on this agenda as they don’t have as much to gain from this work as those round the table do.

14. Katy Worobec (UK Finance) didn’t think we should look at legal and regulatory barriers in isolation. And John Appleton (HMT) reminded the group to be conscious of any unintended consequences from legislative changes.

Agenda item 3: Next steps

15. Richard Riley (Chair, Home Office) summarised the conversation stating that the proposal for the JFT 2.0 needed re-framing, with the work plan lifting up a level. He considered there was still work to do on the outcomes. He proposed an extraordinary meeting of the group to work through these issues.

Action 5:

Katherine McNulty (Home Office) & Cifas to convene a meeting with interested participants to work through the detail of the JFT 2.0 proposal.

Action 6:

Home Office to seek the Home Secretary’s view on the proposal to appoint Mike Haley chair of the board and on the direction of a reset JFT.

Action 7:

Home Office to confirm timescales for reporting back to the Public Accounts Committee and HASC.

Agenda item 4: AOB

16. Richard Riley concluded the meeting by thanking the group for their support during the period he has been chair. And the group thanked Richard for the dedication and guidance he had provided.

17. The reset JFT will come into existence in the New Year, with the next meeting of the Management Board expected early in 2019.