According to a research conducted by Financial Fraud Action UK, the online element was by far the largest, accounting for GBP 110 million, up from GBP 89.5 million in the first six months of 2013.
Findings indicate an explosion in phishing attacks, where unsuspecting users are tricked into giving away their personal and card details so that cybercriminals can crack online accounts and make fraudulent purchases. The Anti-Phishing Working Group recorded the second highest ever number of phishing websites in Q2 2014 at 128,378, with over 530 brands targeted.
Card fraud is not just bad for the customer but can be crippling for the retailer, which is liable via chargebacks to reimburse the bank, which has in turn refunded the customer’s money. It’s not just the cost of this that the retailer must absorb, however. There could be additional administrative or legal charges for one thing, and then there’s the unquantifiable damage to brand value.
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