A report released today by Financial Fraud Action UK (FFA UK) shows that card and online banking fraud increased in 2013.
|Card Fraud Increased in 2013 - e-moneyman.co.uk|
Fraud damages on UK cards reached £450.4 million in 2013, 16% more than in 2012, despite of the fact that total spending on all debit, credit and prepaid cards hit £532 billion in 2013 with 10.9 billion transactions made.
Overall, card fraud losses increased from 7.1% for every £100 spent in 2012 to 7.4% in 2013. Losses on remote card purchases (online, telephone or mail order) increased by 22%.
The United Kingdom's market is Europe’s largest online shopping economy with spending by British consumers rising by 16%in 2013 to reach £91 billion. Debit, credit and prepaid cards offer consumers protection against fraud.
Online fraud against UK merchants came to £105.5 million in 2013, plus 4% from the previous year, with a considerable increase in fraud against online retailers based overseas. As well as tricking customers into handing over personal and card details, fraudsters are using malwares to compromise card details. The card fraud losses due to fraud on lost or stolen cards increased by 7% to £58.9 million from £55.2 million in 2012, mainly due to distraction thefts in shops and bars and shoulder surfing at ATMs machines.
Online banking fraud has increased by 3% to £40.9 million from £39.6 million in 2012. Criminals are increasingly targeting business customers rather than personal accounts due to higher return. Telephone banking fraud has fallen 8% to £11.6 million from £12.6 million in 2012.. Cheque fraud losses fell 22% to £27.5 million from £35.1 million in 2012.