Interviews

Take Five Day on fraud

by Mark Rowe

In 2016, the UK lost £2m each day as a result of financial fraud, according to figures from Financial Fraud Action UK (FFA UK). Overall financial fraud was £768.8m, an increase on the £755 million lost in 2015.

Banks and financial services providers across the UK have come together for the first time for a national day of action to raise awareness of how everyone can protect themselves and their loved ones from financial fraud. The day, part of the Take Five campaign, will see many branches opening five minutes early. Staff in more than 6,800 bank branches will encourage customers to take the time to talk to five others about the simple steps they can take to protect themselves from financial fraudsters.

Katy Worobec, Director of FFA UK, said: “Tackling financial fraud is a priority for our members and a great deal of progress continues to be made. However, as today’s figures highlight, this remains a significant problem with fraudsters using increasingly sophisticated methods to circumvent bank technology and target victims. While the payments industry stops six in every ten pounds of attempted fraud, it cannot solve the problem alone. Collective action is needed with banks, police and customers all playing their part. I hope today, on Take Five Day, customers will take the opportunity to find out how they can help better protect themselves and their loved ones from falling victim to financial fraudsters.”

To mark Take Five Day, new research reveals that almost three quarters of people (74 per cent) are worried about falling victim to financial fraud while more than six in ten (68 per cent) expressed the same concern about their families. Despite this, seven in ten (71 per cent) admitted they had never discussed with anyone how to protect themselves against financial fraud with more than half (55 per cent) believing it was too complicated to talk about.

Tony Blake, Senior Fraud Prevention Officer, DCPCU (Dedicated Card and Payment Crime Unit), said: “There are simple steps that we can all take to protect ourselves and those around us when it comes to financial fraud, so it is concerning that almost three quarters of people admit they have never discussed the issue. On Take Five Day we are encouraging everyone to share the message that it’s okay to stop and think before sharing any personal or financial details. Taking that moment allows us all the opportunity to follow the simple advice which will better protect us from fraudsters.”

Take Five Day is part of the Take Five campaign – offering advice to help prevent financial fraud. It focuses on financial frauds targeting customers, such as email deception (known as phishing) and phone and text-based scams (sometimes known as vishing and smishing), and is designed to remind people that it pays to stop and think. The campaign is asking consumers to help protect themselves from financial fraud:

– Never disclose security details, such as your PIN or full password – it’s never right to reveal these details
– Don’t assume an email request or caller is genuine – people aren’t always who they say they are
– Don’t be rushed – a bank or genuine organisation won’t mind waiting to give you time to stop and think
– Listen to your instincts – if something feels wrong then it is usually right to pause and question it; and
– Stay in control – have the confidence to refuse unusual requests for information.

Comment

Lisa Baergen, director at counter-fraud software company, NuData Security, called the losses astounding. She said their magnitude can’t help but have a dampening effect on the UK economy. “It’s also bad news for consumers, who often bear the brunt of the costs of fraud, especially in account takeover and new account fraud cases. It’s no wonder that consumers are pushing back on institutions and companies to improve security, holding them accountable, yet still wanting to have a good experience going through the gates.

“Financial fraud offers a lucrative source of income for cybercriminals, with 3.6 million fraud incidents last year. With such a tempting promise of high reward and low prosecution rates, emboldened cybercriminals have grown in their sophistication, exploiting the human-interest factor by posing as banks or suppliers and then duping consumers into revealing their personal details. These scams have also proved effective in targeting commercial organisations, as senior executives have been tricked into revealing sensitive information enabling the hackers access to a company network.

“The increasing volume of attacks globally has also been attributed to more fraudsters willing to commit the crime, more data available on the black market, and more financial institutions and merchants vulnerable to attacks. Plus, as more countries fully adopt EMV, fraudsters have switched their focus to online environments, and as a result, fraud continues its migratory path to all available online channels.

“To detect out-of-character and potentially fraudulent transactions, before they can create a financial nightmare for consumers, we must adopt new authentication methods that can’t be deceived. Solutions that draw from consumer behaviour and interactional signals are leading the way to provide more safety for consumers without friction, and less fraud in the marketplace.

“To combat these types of attacks, consumers should always report dubious emails to their banking providers. No legitimate organisation will ask for security or banking details, so consumers need to be suspicious of any emails that request this information.”

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