Online banking fraud losses increased by almost a third, reaching GBP21.6m (USD34.85m). Most of these frauds occurred as a result of internet scams, with a 200% rise in the number of phishing websites.
As for the number of frauds, a relatively new set of techniques categorised as Card ID theft registered the largest increase, rising by 27%. These techniques consist in obtaining cardholders sensitive data, such as address and date of birth,and then using them to ask banks to issue new cards or open new accounts on behalf of the cardholders.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The UK Cards Association also says that fraudsters have adapted to the introduction of chip-and-pin cards by resorting to more straightforward techniques. This includes distracting people in shops or at cash machines and then stealing their cards without them noticing, as well as simply tricking them into handing over their cards and PINs on their own doorstep, says the report.
The increase in fraud losses did not follow an increase in card use. The proportion of losses over the amount spent on cards decreased from 0.066% in the first half of 2011 to 0.063% in the first half of 2012.
According to the UK National Fraud Authority, card frauds account for only just over half a per cent of the total GBP73bn lost in frauds every year.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
