Finance & Banking,
Fraud Management & Cybercrime,
Fraud Risk Management
Limited Advances in Mandating Customer Compensation for Financial Scams
In 2025, financial scams and synthetic identity fraud persisted with little indication of decline, as regulatory bodies concentrated their efforts on fraud prevention rather than on implementing mandatory victim reimbursements. Nonetheless, several countries began to introduce new anti-scam measures that emphasize both prevention and accountability within the industry, as noted by Ken Palla, a fraud expert and former director at MUFG Bank.
Beyond the United Kingdom, regulatory approaches leaned more towards control mechanisms. Countries such as Canada, Singapore, Hong Kong, Thailand, and the Philippines have all engaged in enhancing preventive strategies and tightening regulations, according to Palla.
In a video discussion with Information Security Media Group, Palla elaborated on the push in Southeast Asia to ensure accountability across multiple sectors for controlling scams. He highlighted the intricacies involved in merging reimbursement protocols with the enforcement of technical measures, and suggested that 2026 may see greater scrutiny surrounding issues like money mules, regulations for cryptocurrency ATMs, and cross-border fraud prevention strategies.
Palla has been influential in shaping early responses to U.S. regulatory guidance aimed at improving online security for banks, notably through the 2005 and 2011 FFIEC guidelines. His advisory role at the RSA Conference eFraud Global Forum further underscores his extensive expertise in this arena.
