New report examines data sharing in efforts to combat economic crime

According to the report, economic crime has a significant financial impact, with global losses estimated at GBP 3.1 trillion annually and an GBP 8.5 billion toll on the UK economy each year. 

The report, titled ‘Breaking Barriers: How Data Sharing Can Transform the Fight Against Economic Crime’, explores how government and private sector cooperation on data and intelligence sharing can improve efforts to detect and prevent fraud.  

Commissioned by Enveil, the research highlights an agreement among stakeholders on the need for enhanced fraud mitigation strategies that would create a more challenging environment for illicit activities.

Barriers to data sharing and policy challenges 

According to the report, existing policies and practices around economic crime prevention lack a unified direction, prompting the need for further research. Representatives from Enveil noted that despite advancements in technology, stakeholders have yet to fully capitalize on tools that could improve outcomes. They pointed to Privacy Enhancing Technologies (PETs) as an emerging solution, currently being tested in both controlled and real-world settings. 

The report's findings are based on interviews conducted by Global Counsel with senior stakeholders from UK organisations involved in economic crime prevention. The study identifies four primary obstacles to effective data and intelligence sharing: 

• Legal ambiguity – the absence of precise legal definitions, such as a standardised understanding of 'economic crime,' creates challenges for firms in managing compliance risks. 
• Fragmented data-sharing frameworks – differences in governance and data standards across industries have led to inconsistent cross-sector collaboration, complicating participation and increasing costs. 
• Lack of clear incentives – many firms are willing to assist in combating economic crime but require regulatory clarity to ensure participation is straightforward and cost-effective. 
• Slow adoption of new technologies – while criminals quickly adapt to technological advances, some firms are hesitant to integrate external solutions, including PETs. 

The report outlines recommendations for overcoming these challenges in the UK. It suggests that regulatory bodies, including the Financial Conduct Authority (FCA), the Information Commissioner’s Office (ICO), and the National Economic Crime Centre (NECC), conduct operational pilots to assess new technologies such as PETs.