United Kingdom

Details

  • Service: Advisory, Risk Consulting
  • Industry: Technology
  • Type: Press release
  • Date: 12/06/2013

Digital payments don’t have to increase risk of fraud, says KPMG 

 

As digital currencies come under the spotlight, with news that authorities in the US plan to explore the potential for using ‘virtual’ currencies to carry out fraud*, KPMG’s head of payments in the UK questions whether the existing approach to payments regulation is being outpaced by technology.


Mark Hale says: The scale, rate and nature of technological change continues at a staggering pace, but it is the associated change in human behaviour that requires the most attention.   The problem, after all, is not about what technology can do, but the fact that every technological development can be misused.


“The fact is that the world has gone digital, the high street has gone online and business has gone global and this means that ‘the Internet genie is out of the technological bottle’.  Regulators need to understand and respond to this by adapting to the digital world themselves and to do this successfully they must invest in analytical approaches, technical tools and their industry relationships.


“It would be a fundamental mistake to assume that anonymity is criminal and that technology is bad.  It is also wrong to assume that digital payments carry more risk than mainstream methods of payment.  Provided they are well designed, well regulated and well conducted then new payment technologies should not be ignored.


“That is why the key requirement is to really get to the root cause of the risk, to apply fundamental regulatory principles and determine what needs to be done, and then to combat that risk by using technology to make regulatory interventions as efficient and effective as possible. 


“A digital world needs digital payment mechanisms to create economic value, meet customer needs and support business innovation.  It also needs regulation around the digital environment and this means that traditional approaches to developing regulatory intervention need to adapt.”

Ends

 

Notes to editors

 

* As reported in the Financial Times, 11 June 2013 - http://www.ft.com/cms/s/0/5c7a453e-cf97-11e2-a050-00144feab7de.html#axzz2VpMVXGVY

 

Media enquiries:

 

Mike Petrook, KPMG Press Office
020 7311 5271 (t), 07917 384 576 (m) or
mike.petrook@kpmg.co.uk

 

About KPMG


KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.

 

 

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