12.1% of people in the UK have been the victims of payments fraud in the last four years, according to new research by ACI Worldwide.
Its report shows that online fraud and digital wallet hacks now account for 19.8% of UK fraud cases, while the number of those falling victim to confidence tricks has increased to 12.8% of all fraud cases.
New kinds of fraud, including digital account hacking, social engineering and identity theft have reached pandemic levels in the UK.
UK Finance recently revealed that British fraud victims lost £1.3 billion in 2021 alone amid a surge in online fraud, with a near 40% rise in authorised push payment (APP) scams. The study reveals similar trends across Europe and globally.
“As more consumers rely on digital and real-time payments, fraudsters are increasingly targeting the online space to steal sensitive information and top up any missing pieces by impersonating well known organisations such as banks or government bodies,” says Jackie Barwell, Director – Fraud Product Management, ACI Worldwide.
“The advent of open banking and decentralised financial services offers additional room for the problem to grow.”
She adds: “A radical rethink of fraud fighting strategies and industry wide collaboration is required to bring the situation under control. It is an issue that banks cannot solve on their own any longer. “
“Financial service providers, social media giants, telco companies and enforcement agencies all need to work together to stop fraudsters in their tracks before the fraudulent transactions take place. The answer to fighting fraud will not be found by working in isolation.”
“Banks need to wake up to the fact that, while they need to use their most advanced technology to monitor outgoing transactions, the same needs to be done for incoming payments to detect mule and fraudulent accounts,” says Cleber Martins, Head of Payments Intelligence and Risk Solutions, ACI Worldwide.
“We must see increased accountability at the receiving end and enhanced data sharing among all participants in the ecosystem – without breaching privacy regulations.”
“As fraudsters are becoming more advanced, a detailed and holistic view of all payments activity is essential to containing them.”