Tuesday 8th October, 2013

According to new figures by Financial Fraud Action UK, fraud losses on UK cards totalled £216.1 million during the first six months of 2013, showing a 17% increase from losses of £185.0m in the equivalent period of 2012.

Card fraud continues to remain low compared to previous peaks: losses have dropped 29% from 2008 high, despite modest increase over the first six months of 2013 compared with the first half of 2012

While enhanced security features - such as Chip & PIN, online shopping protections, and sophisticated detection processes used by banks and retailers - have improved fraud prevention, the recent rises have been attributed to the growth of deception crimes. These attacks typically seek to dupe consumers into parting with their financial and personal information.

Fraud on purchases made by cards online and over the phone saw a 23% increase to £142m compared to the first half of 2012, this needs to be seen in the context of the increase in card spending, particularly on the internet.

Fraud losses for e-commerce have reduced by just under a quarter since their peak in 2008, despite a two thirds increase in online card spending over the same period.

Card ID theft increased over the first half of 2013 by 24% to £18.1m. The industry has worked with the Royal Mail, which has resulted in a 28% fall in losses from the non-receipt of cards through the mail.  
 
Online banking fraud fell 21% to £17.1m from £21.6m during the equivalent period in 2012. This is due to enhanced processes for intelligence-sharing across the banks, as well as better online security tools and greater awareness amongst consumers.

Cheque fraud losses fell 12% to £15.8m from £17.9m during the equivalent period in 2012. A major contribution was made by the industry-sponsored Dedicated Cheque and Plastic Crime Unit (DCPCU) during the second half of 2012, when officers foiled a counterfeit cheque crime groups, saving in excess of £5 million.