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BizReport : Ecommerce archives : March 13, 2012

UK: Online banking fraud losses continue to fall

Losses on UK credit and debit cards due to fraud are at their lowest levels since 2000, according to Financial Fraud Action UK, and online banking fraud also continues to fall.

by Helen Leggatt

Financial Fraud Action UK, the name under which the UK financial services industry co-ordinates its activity on fraud prevention, has just released financial fraud loss figures for 2011.

Their figures reveal that online banking fraud losses fell 24% in 2011 from $72.8 million in 2010 to $55.3 million in 2011. Despite an 80% rise in phishing attacks consumer vigilance, enhanced fraud protection schemes and better logging-on software and processes have all contributed to the fall in fraud losses.

Fraud losses on UK credit and debit cards dropped 7% from $571.5 million in 2010 to $533 million last year. Financial Fraud Action UK credits this continuing downward trend - 45% in the last three years - to the finance industry's commitment to deter, detect and prosecute fraudsters.

"Driving down fraud and keeping cards safe continues to be a priority for the industry. This is the third year card fraud losses have fallen - clear proof that our endeavors to fight fraud are packing a punch," says Melanie Johnson, Chair of The UK Cards Association (.pdf).

"Customers have also played their part in driving down losses by taking heed of advice about looking after their personal and financial details. Fortunately, they can always be confident that if they are the innocent victim of fraud, they have excellent fraud protection that they don't get if they use cash."

Tags: banking, finance industry, online banking, online fraud, online payments, phishing

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