Monday 17th March,2014

New figures released by Financial Fraud Action UK (FFA UK) show that levels of card and online banking fraud rose during 2013. Improved fraud detection and prevention systems used by banks and established internet retailers continue to have a positive impact, but intelligence suggests that criminals are now targeting individual consumers and small businesses.

Fraud losses on UK cards totalled £450.4 million in 2013, a 16 per cent rise on the total in 2012 of £388.3million. At the same time, total spending on all debit and credit cards reached £532 billion in 2013, a rise of 6.1 per cent on 2012, with 10.9 billion transactions made in the year.

Online banking fraud has increased by 3 per cent to £40.9 million from £39.6 million in 2012. Intelligence shows this increase has also been driven by the rise in ‘vishing’ and malware. Fraudsters are increasingly targeting business customers rather than personal accounts due to the prospect of a potentially higher return.

Telephone banking fraud has fallen 8 per cent to £11.6 million from £12.6 million in 2012. This fall has been as a result of tighter processes by banks which are designed to confirm customers’ identity.

Cheque fraud losses fell 22 per cent to £27.5 million from £35.1 million in 2012. Improved fraud detection methods used across the industry, including the digital analysis of cheques, has led to the considerable decrease.  

Detective Chief Inspector Perry Stokes, Head of the Dedicated Cheque and Plastic Crime Unit, said: "Whether in the real world or online, these latest fraud figures show just how important it is for consumers and businesses to know how to protect themselves against fraud. Always make sure you have the latest security software installed on your computer, so you can safely shop and bank online."