After years of decline, UK card fraud losses rose last year as crooks returned to old-school low-tech techniques, according to Financial Fraud Action figures.
When it comes to defrauding, I guess these are two skill sets that have been deployed for a while, one being the subtle out of sight technology based hacking of user account information through phishing, key stroke collection etc and the soft skill based
face to face techniques that relies on the physical skills of the fraudster and gullibility and ignorance of the user. While the former one can be handled centrally through periodically stregthening the FRM systems the latter is going to be tough to stem as
there it is going to depend on the individual users ability to detect and deter. I guess banks need to continue to educate their users and warn them from time to time and include this in their tools to combat Fraud.
Kudos for some sensible and balanced reporting on the subject of fraud. For the first time, I'm seeing a statement like "Meanwhile, losses on CNP transactions rose by 11% in 2012 but, says Financial Fraud Action, this needs to be seen in the context of the
sharp 18% increase in card spending on the Internet over the last year". This clearly proves that fraud as a percentage of transaction value is actually going down. I look forward to the day when we can see more accurate headlines like "CNP fraud now rarer
to £90k base, double OTELondon, UK
© Finextra Research 2014