New figures from UK Finance show fraudulent activity when fraudsters open new card accounts or take over existing card accounts will double to £52m in 2022. dollar) reached near.
The British Banking Association said in a report: Annual Fraud Report 2023 Overall, online and offline fraud losses fell 8% year-on-year to £1.2bn ($1.5bn), saving the financial industry the same amount again from fraud.
Although the majority of these incidents (78%) now occur online, incidents committed via “telecommunications” account for a greater proportion of losses (44% vs. 36%). Email accounted for 2% of fraud incidents last year, while email accounted for 12% of losses.
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When it comes to fraud, two categories stand out on the rise.
Fraud due to lost and stolen cards increased 30% year-on-year to £100m ($125m), with almost 2 cases of ‘card identity theft’ where criminals open new accounts or take over existing ones doubled to £52m.
“According to today’s numbers, card identity theft appears to be a notable area of growth, with a 105% increase in number and 97% increase in value. by a teacher,” explained Mary Young, a civil fraud partner at law firm Kingsley Napley.
“This means that genuine information about card numbers, expiration dates, and even zip codes and addresses has been compromised. is a reminder that the need for vigilance applies to all aspects of life, both online and offline.”
Elsewhere, Verified Push Payment (APP) scams continued to wreak havoc on victims in 2022. This includes scams such as romance scams, business email compromise (BEC) and investment scams. In these scams, victims are tricked into voluntarily sending money to scammers (usually impersonated) as legitimate entities.
About 78% of APP fraud incidents last year started online and 18% over the phone. Overall, losses from APP fraud decreased 17% year-on-year to £485m ($607m), with identity theft accounting for the largest amount (£178m) and purchase fraud the largest number (£178m). 57%).
However, the number of APP fraud incidents where banks were reluctant to refund customers increased by 6% over the period.
Editorial image credit: Nick Beer / Shutterstock.com
