Tuesday 18th December, 2012

Leading fraud consultancy UK Fraud has identified 10 key trends that will characterise the domestic fraud prevention market in 2013. These trends are:

1. The overall fraud levels will continue to increase dramatically across the UK and the rest of Europe. Fraud hotspots most likely to be affected include: banks and card companies, insurers, online merchants, retailers and government be it HMRC, the universal credit scheme or local authorities.
   
   
2. The types of fraud likely to see the biggest growth will be CNP (Card Not Present) card fraud other forms include;
   

   - cybercrime
   - internal fraud
   - supply chain fraud
   - and procurement fraud is also set to rise significantly.
   
   

3. Mortgage fraud is also set to surge during this year, with credit rating experts pointing the finger at further rises in first-party fraud.
   
   
4. Cloud security data breaches and suspicion in some areas will continue. An increasingly greater emphasis will be placed upon PCI DSS and other data security and integrity issues.
   
   
5. CNP fraud solutions will be based around systems for acquirers, online merchants and PSPs (Payment service provider), who are regularly the victims of this type of fraud.
   
   
6. Most people feel that there could be a lack of unified central direction and strategy from government. The UK government’s response is divided between the NFA, the Cyber Crimes unit and the Cabinet Office’s FED (Fraud Error and Debt Initiative).
   
   
7. The USA is increasingly ready for a policy U-turn on the adoption of signature as the CVM of choice.
   
   
8. Major insurers will continue to develop a strong and very credible fraud prevention solution based around the ‘front end’ (underwriting stage of business) - focusing on strong industry wide data-sharing.
   
   
9. There will be a major shift in the presence, position and fraud service offerings of one or more of the major data-bureaux (such as credit reference agencies), as more solutions either move ‘in-house’ or move to systems developed by a host of new players in various fraud sectors.
   
   
10. And there will be some surprises as there always are – whether it's fiddling expenses or rogue traders.
    
    

Says Bill Trueman, CEO of UK Fraud said “if we are to stay ahead of the fraudster, we have to be able to read these trends and manage both our strategy and the risks accordingly. In highlighting what we see as the trends, we aim to contribute to the debate and raise awareness of the risks.”