According to a study released by the Financial Fraud Action UK (FFA UK ), a variety of factors account for the decrease in online banking fraud such as increased customer awareness of computer security combined with banks’ use of fraud detection software. However, phone banking fraud losses have grown to GBP 8.6 million (a 48 percent increase) during January to June 2011.
When it comes to total fraud losses on UK cards, the value has fallen to GBP 169.8 million between January and June 2011, down 9 percent reduction as compared to the losses recorded in the H1 2010. This value is the lowest for 11 years and also the third consecutive fall in card fraud. However, there has been an increase in old fashioned scams, criminals using distraction techniques and social engineering methods to steal peoples cards or phone banking details.
The study has also pointed out that cheque fraud losses have seen a 17 percent growth, from GBP 14.0 million in H12010 to GBP 16.4 million during the same period in 2011. More than GBP 254 million of attempted cheque fraud has been identified and stopped during the clearing process in H1 2011.
The National Fraud Authority (NFA) has estimated that fraud costs the UK more than GBP 38 billion a year, with card and banking fraud accounting for only 1.2 percent of this figure.
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