25% Year-on-Year Increase in Financial Fraud Losses for the First Half of 2016

Cyber and ID fraud dominate the fraud landscape, and online scams and attacks continue to rise. E-commerce is growing, and is a tempting prospect for fraudsters looking to use identity and payment data such as credit and debit card information they have gained via the vast ‘carders markets’. Fraudsters are sophisticated and can easily gather information which can then be used to open accounts and make purchases online fraudulently. This situation is exacerbated by an increasing frequency of data breaches by hackers who can then sell this data on to other criminals. In addition, a frightening number of consumers are also still being tricked into handing over their personal data. This usually occurs when a criminal is able to convince an individual that they are emailing or calling from a legitimate organisation and they need to verify their personal details. Using this information the criminal fraud networks can create high quality ID data to sell via the dark web.

The financial services industry has to work together, educating consumers and sharing information to help collectively tackle this criminal activity. The focus must be two-fold. It is vital that any organisation holding personal data continuously evolves the systems and processes in place to keep that information safe. Equally, any business handling financial transactions has to take every possible step to ensure the customer they are dealing with is genuine. It is clear that passwords alone are no longer enough, fraudsters are wise to our thinking when we create a password, making them all too easy to crack. This is why businesses need to invest in new technology like biometrics and device recognition creating multiple layers of defence. The criminals don’t stand still, and businesses of all sizes need to work hard to stay ahead.”

Author: Dylan Jones

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