Financial fraud losses due to cyber-attacks registers 26 percent growth

According to a recent research conducted by Financial Fraud Action UK, some GBP 755 million-worth of losses were recorded in 2015 across payment cards, remote banking such as internet and mobile phone banking, and cheques.

Figures show that bank and card company security systems detected and prevented a total of GBP 1.76 billion of fraud from happening in 2015, totalling GBP 7 in every GBP 10 of potential fraud being stopped.

A way that criminals use to convince someone into handing over their personal details is by cold calling, texting or e-mailing a victim, claiming to be from a trusted organisation, such as a bank, the police, a utility company or a government department. Often, they will claim that the victims account needs to be updated. They will then try to trick the victim into handing over personal details which can be used to commit fraud.

There has also been a growth in sophisticated online attacks such as data breaches and malware, where malicious software is unknowingly downloaded onto a computer. Criminals use personal information stolen through data breaches to commit fraud directly, for example by using stolen payment card details to go on a spending spree online.

Within the financial fraud losses for 2015, losses on UK payment cards increased by 18% compared with the previous year, to reach GBP 567.5 million. Fraud on contactless cards and devices represents just 0.5% of overall card fraud. Meanwhile, remote banking fraud losses leapt by 72% compared with 2014, with GBP 168.6 million-worth of losses recorded. Meanwhile, cheque fraud losses totalled GBP 18.9 million in 2015, a 6% fall from 2014.