Financial Fraud Action UK, (previously known as APACS3) has just published the latest payment industry fraud losses for the first half of 2009, in conjunction with The UK Cards Association and the Cheque & Credit Clearing Company.
Losses from online banking fraud totalled £39.0 million during the six months to June 2009 a 55% rise on the 2008 figure. The increase is largely due to the use of more sophisticated methods such as malware scams specifically targeted to online banking customers rather than the banks’ own systems. There were also more than 26,000 phishing incidents during January to June 2009 – a 26% increase on the amount seen in the same period last year.
Cheque fraud losses during January to June 2009 decreased from £21.2 million to £15.6 million. The overwhelming majority of fraudulent cheque payments get stopped before the cheque is paid, and the industry’s ongoing work to prevent cheque fraud coupled with the continuing decline in cheque usage is likely to have played a major part in the 26% fall.
Card fraud losses fell 23% to £232.8m in first half of 2009 and for the first time ever there was a fall in card-not-present fraud. The Dedicated Cheque and Plastic Crime Unit (DCPCU) have certainly played an important part in this decrease. Another important factor contributing to the fall in card fraud figures has been the introduction of Chip and PIN. Since its introduction losses at UK retailers have gone down by 26% from the same period last year. Mail non-receipt fraud fell by 33% and lost and stolen card fraud is down by 6% to its lowest level since the industry collation of fraud losses began in 1991. Additionally, the banking industry continues to work closely with the retail community to raise awareness of the ways in which retailers can protect their chip and PIN terminals from criminal attack.
Losses from phone, internet and mail order shopping fraud have fallen for the first time ever and now stand at £134 million. Reasons behind this decrease include the increasing use of sophisticated fraud screening detection tools by retailers and banks, as well as the continuing growth in the use of MasterCard SecureCode and Verified by Visa (online payment systems that make cards more secure when shopping on the internet), by both online retailers and cardholders.
There has also been a significant decrease in fraud abroad. One of the factors causing this is the fraud detection systems used by the banks and card companies, which monitor for unusual spending - meaning that potential fraud is stopped before it happens.
Click here to download the Q2 Statistical Release
Photo from Creative Commons: Flickr: Andres Rueda