In a world increasingly shaped by digital transactions, the threat of financial fraud looms large, especially for British consumers who are more concerned than their European counterparts about the future of bank and insurance fraud by 2030. To dive deeper into these pressing issues, we’re speaking with Simon Glairy, a renowned expert in insurance and Insurtech, with a sharp focus on risk management and AI-driven risk assessment. With years of experience navigating the evolving landscape of fraud prevention, Simon offers invaluable insights into consumer fears, industry responses, and the role of technology in safeguarding financial institutions and their customers.
What’s behind the growing concern among British consumers about a surge in fraud by 2030, and why do you think these fears are stronger in the UK compared to other European nations?
The concern among British consumers—84% of whom expect fraud to increase by 2030—stems from a mix of high-profile cyber incidents and the rapid digitization of financial services. The UK has a highly connected economy, with a huge reliance on online banking and digital insurance platforms, which naturally amplifies exposure to risks like phishing, identity theft, and data breaches. Compared to countries like Germany or France, where digital adoption might be slightly less aggressive or where regulatory frameworks differ, the UK also has a more visible media narrative around fraud and cyberattacks. This heightened awareness, coupled with past incidents, fuels a sense of inevitability about fraud becoming a bigger issue.
How do you think these widespread fears might affect consumer trust in banks and insurance providers over the coming years?
Trust is already fragile, and with 81% of UK consumers expecting a major cybersecurity incident at a bank, we’re looking at a potential erosion of confidence if institutions don’t act decisively. If customers feel their personal data or finances aren’t safe, they might hesitate to engage with digital services, or worse, switch to competitors perceived as more secure. For banks and insurers, this means trust isn’t just a nice-to-have—it’s a business imperative. They’ll need to double down on transparent communication, robust security measures, and quick responses to any breaches to maintain loyalty and prevent a trust crisis.
With such high expectations of cybersecurity incidents, what strategies should financial institutions prioritize to ease these consumer fears?
First and foremost, proactive investment in cybersecurity infrastructure is key. This includes adopting advanced encryption, multi-factor authentication, and real-time threat detection systems. But beyond tech, institutions need to focus on consumer education—teaching customers how to spot scams and protect their data. Regular updates on security protocols and swift, transparent handling of any incidents can also go a long way. It’s about building a culture of security that reassures customers they’re not just a number, but a priority whose safety matters.
Why do you think older generations, like Baby Boomers, show more concern about financial fraud compared to younger groups like Gen Z?
Older generations, especially Baby Boomers, often have more assets at stake—think retirement savings or property—which makes the idea of fraud deeply personal and threatening. They’ve also lived through a pre-digital era, so adapting to online systems can feel inherently risky, even if they’re not the most frequent targets. On the other hand, Gen Z grew up with tech and often sees digital risks as just part of the landscape. Their lower concern—only 24% list fraud as a top worry—reflects a kind of desensitization, even though they’re statistically more vulnerable to scams.
Despite their lower concern, why are younger generations more likely to fall victim to scams and lose bigger sums when they do?
Gen Z’s comfort with technology can be a double-edged sword. They’re active on social media, where scams like impersonation or ghost broking often spread, and they’re more likely to click on suspicious links or share personal info without a second thought. Plus, they might not have the financial literacy or skepticism that comes with age, so when they’re targeted, they’re less equipped to spot red flags. The larger losses often tie to their reliance on digital wallets or quick online transactions, where a single scam can drain significant amounts before they even notice.
How can the industry tailor education efforts to better protect younger consumers from these fraud risks?
Education for younger generations needs to meet them where they are—on social media and mobile platforms. Short, engaging content like videos or infographics about spotting scams can be powerful if shared on apps they use daily. Gamifying fraud awareness, like quizzes or interactive tools, could also grab their attention. Beyond that, schools and colleges should weave basic financial literacy into curriculums, teaching kids early about safe online habits. It’s about making fraud prevention relatable and actionable, not just a boring warning.
What’s your perspective on the rise of specific scams like impersonation and ghost broking, particularly targeting young drivers via social media?
These scams are a perfect storm of opportunity and vulnerability. Young drivers, often desperate for affordable insurance, are easy targets on platforms where fake brokers can pose as legitimate providers or impersonate trusted brands. Ghost broking—where fraudsters sell fake policies—thrives in this space because it preys on trust and urgency. Social media’s anonymity makes it hard to verify who’s behind an offer, and the speed of these transactions means victims often don’t realize they’ve been duped until it’s too late. It’s a growing problem that needs both tech solutions and awareness campaigns to counter.
How effective do you think insurers have been in combating fraud, especially with recent reports of blocking millions in fraudulent claims?
Insurers have made significant strides, with efforts like blocking over £60 million in fraudulent claims in just six months showing real impact. They’re investing heavily in detection tools and collaborating across the industry to share intelligence, which is crucial. However, fraudsters are evolving just as fast, using more sophisticated tactics. While these numbers are impressive, they’re still playing catch-up to some extent. The focus needs to shift toward prevention—stopping fraud before it happens—rather than just detecting it after the fact, to truly reduce the financial and emotional toll on consumers.
How can technologies like machine learning and voice analytics help the industry stay ahead of increasingly complex fraud schemes?
Machine learning is a game-changer because it can analyze vast amounts of data in real time to spot patterns that humans might miss—like unusual transaction behaviors or subtle inconsistencies in claims. Voice analytics, on the other hand, can detect stress or deception in a caller’s tone during interactions, flagging potential fraud during the initial contact. These tools don’t just react; they predict and adapt to new tactics as fraudsters get smarter. The key is integrating these technologies seamlessly into operations while ensuring they don’t alienate genuine customers with false positives.
What are your thoughts on the Insurance Fraud Bureau’s five-year anti-fraud roadmap and its emphasis on data sharing and public awareness?
The IFB’s “Connected to Protect” roadmap is a solid step forward, especially with its focus on data sharing. Fraud doesn’t respect company boundaries, so having a unified platform where insurers, banks, and even regulators can pool insights is critical to staying ahead of organized crime. Public awareness is equally important—consumers are the first line of defense, and educating them on evolving threats can prevent countless scams. My only concern is execution; these initiatives need sustained funding and commitment to avoid becoming just another well-intentioned plan that fizzles out.
Looking ahead, what is your forecast for the future of fraud prevention in the banking and insurance sectors over the next decade?
I think we’re heading into a decade where fraud prevention will be defined by a race between technology and criminal ingenuity. On one hand, AI and predictive analytics will give institutions powerful tools to detect and prevent fraud in real time. On the other, fraudsters will likely leverage similar tech to create even more convincing scams. I expect tighter regulations around data use and stronger government-industry partnerships to emerge as fraud’s societal cost becomes undeniable. Ultimately, success will hinge on balancing innovation with consumer education—because no system is foolproof if the end user isn’t aware of the risks.
