Jay Floyd, Head of Fraud Strategy and Solutions EMEA, ACI Worldwide comments on the latest ONS crime figures for England and Wales published today:
“The latest data from Financial Fraud UK shows 1.9 million cases of fraud, mainly on UK-issued cards and remote banking fraud (internet, telephone and mobile banking) for the year ending in June 2016, a massive increase of 46% from the previous year.
“The key contributing factors for the huge increase in these types of fraud are simple: changes in how consumers bank today due to technological advances, the mass migration to online shopping, the way we interact with each other and record our lives online. These are the key ingredients of an environment which makes fraud all too often easy to commit.
“The figures also reveal an increase in lesser known kinds of fraud, such as ‘charity fraud’, cases of which increased by 34%, and so-called ‘business trading fraud’ which increased by 16%, which shows that fraudsters are innovative and will try new avenues of fraud once bank shore up traditional fraud defences.
“The figures must serve as a wake-up call for the banking and retail industry. It is increasingly becoming clear that the industry needs a pro-active approach to combating the pandemic of financial fraud and keeping customers on-side.
“The figures should also ring alarm bells with consumes who need to be aware of the dangers when banking or shopping online. ACI’s most recent Global Consumer Fraud Survey has shown a worrying growth in consumers engaging in risky behaviors when it comes to managing their cards and security credentials and all too often the careless behaviour of consumers contributes to the perpetration of fraud.”