The finance industry prevented £820m of unauthorised fraud in the first half of 2019, up 14 per cent on the previous year, according to the latest figures from UK Finance.
Over the same period, £408m was stolen by criminals through unauthorised card, remote banking and cheque fraud. In addition, £208m was lost to authorised push payment (APP) fraud, where customers are tricked into authorising a payment to an account controlled by a criminal.
The compromise of personal and financial data remains a significant driver behind fraud losses. Customer details are being stolen through data breaches at third parties outside the financial sector, while sophisticated “digital skimming” attacks are being used to steal card data when consumers are shopping online. Criminals also continue to use social engineering techniques to trick customers into divulging their personal information or transferring money, UK Finance said.
Katy Worobec, managing director of economic crime at UK Finance, said: “Not only does fraud have a devastating impact on victims, the money stolen goes on to line the pockets of organised criminal gangs involved in drugs, arms and human trafficking. The finance industry is constantly investing in advanced security systems to protect customers from this threat, while helping law enforcement to apprehend and disrupt the criminals responsible.
“A new voluntary code was introduced in May that has significantly improved consumer protections from authorised push payment fraud, with signatory firms committed to reimbursing victims providing they have met certain standards.
“However, criminals are continuing to exploit vulnerabilities outside the financial sector to obtain customers’ data that is then used to commit fraud. We all have a responsibility to work together, including online retailers and social media companies, to beat the fraudsters and keep customers’ data secure.”
Credit Strategy will be holding the Collections & Vulnerability Summit on October 16, 2019, at the Midland Hotel, Manchester. To find out more, visit the event’s site.