SOFIAH NICHOLE SALIVIO

News Editor

Ecommpay has published the second part of its fraud report on financial services and payments, arguing that fraud prevention requires broader cooperation across the payments sector.

The report, titled Beyond the Black Box – From diagnosis to action: transforming fraud prevention for a human-first world, outlines steps government, regulators, businesses and other stakeholders can take to reduce fraud. It follows an earlier instalment that examined the current fraud landscape and the growing role of human psychology in scams and payment crime.

The latest findings suggest a shift in where fraud prevention is breaking down. Rather than outdated technology being the main weakness, criminals are exploiting a combination of human behaviour, limited resources and regulatory complexity.

That assessment reflects a wider debate in payments over whether extra checks and customer friction can still counter changing fraud methods. Ecommpay argues that the current model is too fragmented to respond effectively to a crime that crosses borders and affects both businesses and consumers.

“The first part of our Fraud Report demonstrated how and why the current approach to fraud prevention is failing businesses and customers,” said Willem Wellinghoff, chief compliance officer and UK chair at Ecommpay.

“Over the years, new tools and layers of friction have been added to onboarding and payment processes to tackle the shifting threat of fraud. However, this approach is no longer serving its purpose – more friction is not the answer. What we need is a fundamental shift in how the industry thinks, works and collaborates.”

Pressure points

The report emphasises the limits of traditional fraud controls. It argues that the tools and frameworks used by many firms are no longer sufficient on their own to address newer forms of fraud, especially when criminals rely on social engineering and manipulation rather than direct technical intrusion.

In that context, transaction monitoring, artificial intelligence and regulation still have a role, but only as part of a more joined-up system. Businesses, regulators and government need to align their approaches more closely if they want to reduce losses and intervene earlier.

Wellinghoff expanded on that point in a further comment on the report’s conclusions.

“Traditional fraud prevention tools and frameworks are not equipped to provide comprehensive protection against modern fraud techniques. Robust transaction monitoring, correctly employed AI and balanced regulation are all valuable elements in successful fraud prevention. But businesses, regulators and government must work collaboratively to consolidate approaches and reduce fraud. We must shift from a reactive approach of reimbursing victims after the fact to proactive fraud prevention at source.”

Merchant steps

Alongside its broader recommendations for policymakers and the industry, the report includes practical actions for eCommerce merchants. These are intended to help businesses review their own defences while addressing the customer side of fraud risk.

The measures include discussing fraud prevention with payment providers, auditing internal systems, educating customers about fraud risks and training staff to identify suspicious activity. Ecommpay also calls on merchants to keep up with changes in the fraud landscape, watch for unauthorised use of their brand and report suspected fraudulent transactions to payment service providers.

This suggests the company sees fraud prevention as a shared operational task rather than a function that can be outsourced entirely to a single payments partner or software tool. It also points to growing concern across online commerce that attacks increasingly target trust, routine behaviour and weak links between businesses and consumers.

Broader debate

The publication adds to industry discussion about how to balance consumer protection with smooth payment journeys. Payments companies and merchants have long faced pressure to tighten controls, but they also risk creating barriers that deter legitimate customers if checks become too intrusive.

Ecommpay argues that this trade-off has become harder to manage because fraudsters are adapting faster than many existing control systems. In particular, the report suggests the sector must move beyond simply adding extra layers to account opening and payment flows if it wants to respond to more complex, psychologically driven fraud attempts.

Founded in London in 2012, the company operates in global and local acquiring, payment processing and orchestration. Its latest report centres on the view that fraud can no longer be treated as an isolated compliance issue for individual firms, but as a systemic problem requiring coordination across the market.

The report’s central recommendation is that the sector should focus less on reimbursement after losses occur and more on stopping fraud before money leaves the system.

Searchable found that 93% of London businesses in its study were described inaccurately by major large language models. The research focused on small and medium-sized enterprises and compared their results with those of larger companies.

It tested ChatGPT, Perplexity and Gemini more than 13,000 times on 165 London businesses, asking about services, contact details, staffing and other identifying facts. The responses were then checked against official LinkedIn profiles and Companies House records to determine whether the information was correct, incomplete or missing.

The results suggested a sharper problem for smaller firms. Half of SMEs received at least one false fact from an LLM, compared with 32% of large companies, a 56% higher rate of fabricated information for SMEs.

Across all prompts, 11 in 100 questions about SMEs returned false or missing information on key brand facts, compared with 7 in 100 for large companies. The study also found that LLMs were twice as likely to fabricate information about an SME, with a 5% fabrication rate versus 2% for larger brands.

Brand confusion was another issue. The findings showed that LLMs misattributed or confused SME brand names at a rate of 4%, compared with 0.7% for large companies, suggesting smaller businesses are more vulnerable when users rely on AI tools for basic discovery queries.

Discovery gaps

The weakest areas for accuracy were company size, website, founding year, phone number and services. These are among the details prospective customers often seek when deciding whether to contact a business.

Inaccurate responses included verifiably false facts, incomplete listings that covered at least 30% fewer essential services, or answers that failed to retrieve any verifiable existing information about a company.

The analysis adds to a wider debate about the reliability of consumer-facing AI tools as they become part of online search and recommendation behaviour. For smaller businesses, errors in basic facts could affect discovery when users are looking for a supplier, a contact number or confirmation that a company offers a specific service.

Chris Donnelly, co-founder of Searchable, linked the problem to the way language models are trained on public web data. He said smaller companies may be less visible to such systems because they are mentioned less often online than larger brands.

“Right now, if someone asks ChatGPT about a local company, there’s a very real chance the AI either makes something up or draws a blank on key information. That’s the equivalent of customers and revenue walking straight past businesses they should be connecting with.

The issue is related to how LLMs work. They’re trained on publicly available web data, which often skews toward larger, more widely referenced brands. A London SME with a smaller digital footprint is less likely to register among what AI is reading and citing to its users,” Donnelly said.

His comments reflect concern that AI systems may reproduce an existing imbalance in online visibility. Large businesses typically have broader media coverage, more backlinks, more directory listings and stronger digital footprints, all of which can make them easier for models and search systems to identify consistently.

At the same time, the findings suggest the gap is not fixed. Searchable argued that AI-driven discovery does not necessarily entrench incumbent brands in the same way as traditional search rankings, creating room for smaller companies to improve how they are represented.

“At the same time, AI doesn’t cement big brands as favourites in the way that traditional search engines do. The playing field can be levelled more quickly for a well-optimised SME that understands how to make itself visible to these systems,” Donnelly said.

How it was tested

The study covered 165 London businesses and generated 13,365 AI responses. Questions covered location, business size, services, specialties, website, founding year, phone number and other identifying facts.

A response was classed as inaccurate if it contained false information, omitted a significant share of essential services or failed to return verifiable information that existed in public records. That means the research measured not only outright hallucinations but also cases where AI systems appeared unable to surface established facts about a business.

The results indicate that while AI assistants are becoming a common route for gathering information, their performance on local business discovery remains inconsistent. For SMEs that depend on accurate digital visibility, the data suggests a missing phone number, a wrong service description or a mistaken identity can still appear when a potential customer asks an AI a simple question.

SOFIAH NICHOLE SALIVIO

News Editor

3PL has appointed Ryan Walker as Head of Customer Experience, marking his return to the business.

The newly created role at the Wigan-based logistics and fulfilment company reflects a stronger focus on its existing customer base following changes to service delivery and technology across the organisation.

Walker will oversee the customer journey across all touchpoints, with responsibility for customer engagement and alignment between operational teams. He will also work to bring people, processes and technology closer together as the company reshapes how it supports clients.

Based in Greater Manchester, 3PL provides outsourced fulfilment services for retailers and brands in the UK and overseas. Founded in 2006, the business operates in third-party logistics, serving direct-to-consumer and multichannel retail customers.

Customer focus

The new post signals a shift towards dedicated leadership oversight of customer experience. It forms part of a wider strategy to improve service through investment in staff and systems.

The move comes amid intense competition in outsourced fulfilment, with logistics providers under pressure to offer reliable delivery, clear visibility over orders and stock, and stronger support for brands selling across multiple channels.

3PL has developed its own technology platform, 3PL Fusion, to give customers oversight of operations. Alongside this, the company runs two main service lines: 3PL Direct for direct-to-consumer fulfilment and 3PL Flex for retailers with more complex business-to-business and direct-to-consumer requirements.

Walker’s remit includes finding ways to improve each stage of the customer journey while ensuring customer needs remain part of decision-making across the business. His appointment is tied to the company’s next phase of growth as it expands services and refines operations.

Ian Walker, Founder and Group Chief Executive Officer of 3PL, said: “I’m delighted to welcome Ryan back to the business at an exciting time for everyone associated with 3PL. As we continue to invest in our people, technology and customer proposition, the creation of this role demonstrates our commitment to delivering an exceptional experience for every customer we serve.”

“With a proven pedigree in this space, Ryan brings energy, creativity and a customer-centric mindset that aligns perfectly with our values and ambitions. His appointment will play an important role in supporting the next phase of our growth, strengthening the 3PL brand as we continue to innovate within the fulfilment and logistics sector and enhance the experience we deliver to our customers.”

Growth phase

3PL presented the appointment as part of a broader effort to strengthen service quality while adapting to changing customer expectations. For fulfilment operators, that often means balancing warehouse efficiency with faster response times, tighter integration between systems and staff, and clearer communication with clients selling across websites, marketplaces and wholesale channels.

In that context, customer experience roles have become more prominent across logistics and supply chain businesses, particularly where providers are trying to stand out through service rather than price alone. A dedicated executive focused on the customer journey can also help reduce friction between commercial, operational and technology teams.

For 3PL, the return of a former employee in a new senior role suggests the company sees value in combining institutional knowledge with a sharper service agenda. It did not disclose how long Walker previously worked at the business, but said he returns with experience in the field.

Ryan Walker said: “I’m incredibly proud to be rejoining the business and taking on this new challenge. 3PL has built a solid reputation for great service, innovation and lasting partnerships, and I am excited to help shape the next chapter of the customer experience strategy.

“My focus will be on listening to our customers, supporting our teams and identifying opportunities to enhance every stage of the customer journey. I look forward to working closely with colleagues across the business as we continue to build on the strong foundations already in place.”

The role is intended to help ensure customers remain central to decision-making as 3PL develops its operations, service model and technology platform.