Fraud Doesn't Start in the Banking System: NatWest on Controls Without Friction

Quick Summary

Does agentic commerce widen the attack surface? Simon Eacott, Head of Payments at NatWest Group, notes that fraudsters are already well versed in AI, and that much fraud starts outside the banking system on other platforms. Stopping it up front means working across telecoms, tech and social media with real-time intelligence sharing. The best controls, he says, are the ones customers don't notice, and richer payment data is helping.

Why does fraud need an ecosystem response?

Fraud spans all sectors, platforms and borders, and Eacott points out that fraudsters are already very well versed in AI: many scams are AI-generated, deepfakes included. Crucially, an awful lot of fraud does not start in the banking system. The fraud happens on other platforms, and the banking system then facilitates the movement of money.

So the answer has to include telecoms firms, technology companies and social media, with strong collaboration and the right regulatory frameworks, not just the walled garden of financial institutions.

Is reimbursement enough?

Eacott says the UK, and increasingly other jurisdictions, has done a great job of protecting consumers after fraud happens through reimbursement schemes. But the goal has to be to stop it up front, using real-time intelligence sharing that AI will help deliver.

How do you add controls without adding friction?

Customers should not have to choose between security and convenience, Eacott says. Banks need to deliver the best customer experience while keeping appropriate friction that lets them pause and step back when needed. The best controls are the ones customers don't notice.

Richer data is part of that. Better standards and richer data flowing between countries and schemes give greater insight. For treasurers moving cash around the clock, he adds, the value of instant payments is less about speed and more about knowing where your money is at any one time.

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Eacott names the uncomfortable truth in fraud: banks carry the losses for crimes that often start on platforms they do not control. Agentic commerce will not change that on its own, but it raises the stakes. His point that the best controls are invisible is the right design goal. The industry will only reach it if data flows as freely across the ecosystem as the fraudsters already do.