Information Security Buzz: Financial fraud costing UK £2 million a day

March 18, 2017 — Financial fraud costing UK £2 million a day

Lisa Baergen, VP at NuData, comments on the recent finding that financial fraud costing UK £2 million a day.

Following a new report , released from Financial Fraud UK, the overall scale of financial fraud in 2016 was £768.8million, up from the £755million lost in 2015.

Consumers lost the money through payment card and cheque fraud, as well as remote banking fraud, which covers internet banking, telephone banking and mobile banking. The data, from the banking industry body Financial Fraud Action UK, shows that banks and financial firms are still failing to combat the growing threat of fraud in Britain.

These enormous fraud losses are astounding, and their magnitude can’t help but have a dampening effect on the UK economy. It’s also bad news for consumers, who often bear the brunt of the costs of fraud, especially in account takeover and new account fraud cases. It’s no wonder that consumers are pushing back on institutions and companies to improve security, holding them accountable, yet still wanting to have a good experience going through the gates.

Financial fraud offers a lucrative source of income for cybercriminals, with 3.6 million fraud incidents last year. With such a tempting promise of high reward and low prosecution rates, emboldened cybercriminals have grown in their sophistication, exploiting the human-interest factor by posing as banks or suppliers and then duping consumers into revealing their personal details. These scams have also proved effective in targeting commercial organisations, as senior executives have been tricked into revealing sensitive information enabling the hackers access to a company network.

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