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Online fraud prevention in Uk

Ecommerce fraud and online fraud prevention in Uk

Read below about payment fraud, online fraud And fraud prevention in Uk

Payment fraud in Europe’s leading ecommerce market has led UK merchants to recognise the importance of sophisticated fraud prevention strategies, and rules tailored to address online and mobile fraud.

The UK is the leading ecommerce market in Europe and the third largest in the world. According to IMRG, online sales reached GBP 91 billion in 2013, a 16 % increase for 2013.

Fraud losses on UK cards totaled GBP 450.4 million in 2013, a 16% rise on the 2012 total but still down 26% since fraud was at its peak in 2008. Losses are currently 7.4p for every GBP 100 spent.

While card not present fraud peaked at GBP 326.4 million in 2008, 2013 did see a 22% increase in 2013, with fraudulent purchases made online, over the telephone or by mail order totaling GBP 301.1 million. This CNP fraud accounts for 67% of total fraud, up from 54% in 2008.

Within the CNP total, whereas online fraud against UK retailers reached GBP 105.5 million (up 4%), there was a substantial 48% increase in online fraud against retailers based overseas, with losses of GBP 57.8 million.

The face of fraud in the UK continues to change, with increases in 2013 in ID theft, ‘vishing’ and phishing attacks. The UK ranks second behind the US in terms of phishing attack numbers.

‘Low tech’ attempts to steal customer card information (and PINs) remain an issue in the UK, as chip and PIN and sophisticated fraud prevention and detection tools have proved effective in deterring other fraud types. Lost and stolen cards accounted for USD 58.9 million of fraud in 2013, with distraction thefts and shoulder surfing at the ATM highlighted by the UK Cards Association.

The UK market is an attractive proposition for cross-border ecommerce. UK consumers are the highest online spenders in Europe (EUR 2466 per capita in 2012) with travel and hotels the largest single area of spend. Consumers are well protected - recent industry research indicates that 97% of customers receive a full refund of any losses sustained through online shopping and the great majority are willing to make purchases online.

Centre for Retail Research statistics show that the UK leads the market for mobile commerce in Europe, with a predicted spend of GBP 7.9 billion in 2014, up from GBP 4.9 billion in 2013. With above average fraud rates occurring on mobile transactions, merchants need to ensure that they are well prepared for the growth of this sales channel.