Financial fraud grows 25% as criminals exploit data breaches

Financial fraud increase in the UK during the first half of the year as a result of scams and online attacks.

The news comes from new figures published by Financial Fraud Action UK (FFA UK).

Financial fraud losses reached £399.5m in the first half of 2016, a 25% increase on the £320.3m lost in the same period last year.

FFA director Katy Worobec said, “Banks use a range of robust security systems to protect their customers but as these systems become more sophisticated, criminals have increasingly been turning to scams and exploiting data breaches.”

Bank’s security systems managed to prevent the majority of fraud attempts stopping £678.7m over the first half of the year.

It means that £6 in every £10 of attempted fraud in stopped.

Remote purchasing fraud in the first half of the year saw a 31% year-on-year increase with total losses reaching £224.1m, compared to £171.7m in the same period in 2015.

It suggests that card data obtained through malware and data breaches is becoming more used by fraudsters aided by growing the numbers of e-commerce sites and customers.

Worobec said, “The industry takes its responsibility to combat fraud extremely seriously, but banks cannot stop all fraud on their own.

“It is essential all organisations with a role to play work together to better protect individuals and companies.”

Copyright © 2016 FINTECH GLOBAL