Thursday, 3 November 2011

Online banking fraud losses in UK fall again

LONDON - Online banking fraud losses have fallen for the second year in a row, according to new figures by the UK Cards Association. Total fraud losses on UK cards fell to £169.8 million between January and June 2011, 9% less compared with losses in the first six months of 2010.

Although card fraud and online banking fraud both fell, cheque fraud and phone fraud losses are on the rise. Fraudsters increasingly turn to low-tech scams 'as [high-tech] initiatives continue to drive down fraud', the UK Cards Association said. However, the number of phishing websites targeting UK users has increased.

"While these numbers look encouraging it is important to recognise the price customers have to pay for safe online banking", said William Beer, a Director at Pricewaterhouse Coopers. "Two-factor authentication has now become common, with customers having to carry a keyfob or other device in order to log into their bank accounts. While this has lessened the risk of fraud, it has introduced an element of inflexibility into the system and should not be seen as a silver bullet."

Published previously in E-Finance & Payments Law & Policy, October issue, London, 2011. Copyrights apply at all times.