Financial Fraud Action UK reports that credit card fraud was reduced to a loss of £232 million in the 6 month period this year, a drop of 23% from the same period a year ago.
Fraud losses on lost and stolen credit cards are down 6% to £25 million, the lowest figure since 1991.
The credit card companies have been very active in instituting a variety of online securities measures, which are having the desired effect.
The introduction of additional online security techniques, including the need to use a password when making an online purchase, has meant a reduction in fraud of 18% in internet, mail order and purchases via the telephone. Also, the use of a PIN in UK retail establishments has further reduced the fraud level.
However, online banking fraud increased by 55% in the first half of 2009. Losses from online banking fraud were £39 million in the first six months of this year.
Phishing is a major contributor to the banking fraud increase, with 26,000 of those actions, a 26% increase, over the six months.
This technique targets consumers rather than banks, which have much more secure procedures. The quality of a false email, asking for bank details to be updated, is very convincing, with an identical look to a genuine communication.
Small UK businesses are especially vulnerable since the volume of the email they receive is increasing on an ongoing basis and most business financial transactions are done online.
While banks may eventually compensate the companies for losses, the disruption involved in suffering a substantial cash flow reduction is very difficult for small firms to deal with.
Caution and a healthy level of scepticism are needed.
We assist small UK businesses by giving them prospects from our Local Search facility in our UK Business Directory with zero cost for them. There are 1.6 million businesses listed in our directory and the vast majority are small firms.
Monte Huebsch, CEO
Fraud losses on lost and stolen credit cards are down 6% to £25 million, the lowest figure since 1991.
The credit card companies have been very active in instituting a variety of online securities measures, which are having the desired effect.
The introduction of additional online security techniques, including the need to use a password when making an online purchase, has meant a reduction in fraud of 18% in internet, mail order and purchases via the telephone. Also, the use of a PIN in UK retail establishments has further reduced the fraud level.
However, online banking fraud increased by 55% in the first half of 2009. Losses from online banking fraud were £39 million in the first six months of this year.
Phishing is a major contributor to the banking fraud increase, with 26,000 of those actions, a 26% increase, over the six months.
This technique targets consumers rather than banks, which have much more secure procedures. The quality of a false email, asking for bank details to be updated, is very convincing, with an identical look to a genuine communication.
Small UK businesses are especially vulnerable since the volume of the email they receive is increasing on an ongoing basis and most business financial transactions are done online.
While banks may eventually compensate the companies for losses, the disruption involved in suffering a substantial cash flow reduction is very difficult for small firms to deal with.
Caution and a healthy level of scepticism are needed.
We assist small UK businesses by giving them prospects from our Local Search facility in our UK Business Directory with zero cost for them. There are 1.6 million businesses listed in our directory and the vast majority are small firms.
Monte Huebsch, CEO
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