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What does a paltry 500 million pounds in fraud really cost?

I wonder if anyone has worked out the real cost of continuing fraud, even just in the U.K. I realise that in the great totality of transactions that around £500 million isn't thought of as being all that dramatic, but is there erosion of consumer trust and does it have a cost? 

If the primary reason people bank is to keep their money safe, then it must have some cost to the industry beyond the cost of all those only ever partially successful security measures.  What is the total cost of those security initiatives across the industry? What about the lost opportunity cost of all the lost commerce and internet banking that isn't being done by the percentage of people who remain uneasy about digital trust?

We know that ID theft causes massive secondary losses to the economy and direct costs in dealing with the aftermath. Fraud has a direct cost of the event through the chain to rare prosecution.

Data losses which increase the risk of fraud also have a cost. TJX reports that there was no significant impact on sales after the theft of 94 million customer's records, however estimates run at around $250 million in breach related costs. Hopefully this is a rare and extreme example, but the cumulative total of other breaches is must be halfway toward matching it. 

Are all bank brands and instruments being diminished through the £500 million loss, or just some, or just card brands?

What is the total value of the loss of confidence, if any?



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