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Fraud figures

The latest payment fraud losses for 2011, released by the trade group Financial Fraud Action UK for the banking and card payments industry suggests that credit card, debit card and online banking fraud levels have fallen again. According to the group, this continued success is thanks to efforts by the industry, partners, and importantly, customers.

 

Fraudsters’ activities in other areas have caused a minor increase in cheque and telephone banking losses.For more, visit the Financial Fraud Action website. Pat Carroll, CEO, ValidSoft, said: “Today’s figures show a reduction in card fraud, but, as is often the case, what appear to be encouraging statistics disguise a less reassuring reality.
 
“In recent months banks have been taking a far more aggressive approach to transaction declines and in the case of cross-border transactions, on average nine out of ten declined transactions are in fact legitimate.
 
“This is the credit card equivalent of bricking up your doors and windows to prevent burglary – very effective, but hardly a long term solution. This very blunt instrument approach to fraud reduction may reduce absolute fraud, but it also causes widespread consumer dissatisfaction and costs the banks highly in lost revenue and administration costs.
 
“Rather than simply basing their decisions as to whether to accept or decline a transaction using historic data and behavioural patterns of customers, complementary technology exists which enables banks to anonymously make accurate assessments of the real time situation of their customers, so that not only is fraud reduced, but customer satisfaction is maintained at the same time.”


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