On Oct. 18, UK FB issued report showing fraud remains major threat.
UK FB issued mid-year fraud update for 2024 showing number of fraud cases rose by 16% in the first half of this year compared with the same period last year, but with a 1.5 per cent fall in the value of losses across both authorized and unauthorized fraud.
Fraud
Fraud remains major threat to UK and causes serious harm to individuals and society.
In the first half of 2024 just over £570 million was stolen in payment fraud as criminals continue to ruthlessly target people and try to deceive them into making payments or providing enough information to enable their accounts to be accessed or controlled.
As well as financial losses, this crime can cause severe psychological harm to victims.
The best way to protect against fraud is to prevent it from happening in the first place.
In H1 of 2024 over £710mn of unauthorized fraud was prevented, an increase of 13%.
Online Fraud
Most fraud originates on social media sites and via telecommunications networks.
There have been some improvements but telecommunications, social media and technology sectors to do more in partnership with UK FB to protect against fraud.
Intelligence must flow in both directions and be shared with law enforcement.
Need effective user verification and online marketplaces should use proper payment systems and there needs to be a commercial incentive for them to act – these sectors should contribute to the cost of countering fraud and victim reimbursement.
Authorized Push Payment Fraud
For those that fall victim to APP fraud, new reimbursement rules came into force on Oct. 7 2024; these build on a voluntary code and mean an increased proportion of APP fraud losses being reimbursed and a more consistent approach across the industry.
This operates alongside existing approach whereby almost all losses are reimbursed.
UK GVT has recently announced changes to give banks and other payment firms the ability to delay and investigate payments that are suspected of being fraudulent.
It could allow firms time to contact customers and give them the advice and support they need to avoid being tricked by criminals; it will however, only be used in relation to a very small number of payments; it is not about stopping or delaying legitimate payments; rather, it is another tool we can use in the fight to stop this crime.
