RiskUKOctober2017

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Falling Fraud
Editorial Comment
Figures just released by UK Finance reveal financial fraud
losses of £366.4 million in the first half of 2017 to be 8%
lower year-on-year (the comparable figure for 2016 being
£400.4 million). The data, which covers payment card, remote
banking and cheque fraud, also highlights that the finance
industry prevented over £750 million of fraud during the same
period (or 67% of attempted fraud). This compares with £678.7
million of prevented fraud in the first six months of last year.
Drilling down into the fine detail, the industry helped to
prevent over £500 million in attempted card fraud. Actual fraud
losses on cards are down 11% on the same period the year
before to £287.3 million.
Card spending increased by 8.4% year-on-year across the sixmonth
period, meaning that card fraud as a proportion of
spending equates to 7.5 pence for every £100 spent. That’s down
from 8.7 pence in the first half of 2016. This figure peaked in
February 2002 when it was 18.9 pence per £100.
In addition, no less than £160.2 million of remote banking
fraud was prevented. This covers criminals gaining access to an
Internet, phone or mobile banking account to make an
unauthorised transaction. Episodes of such fraud totalled £73.8
million, representing a 3% rise from £71.5 million in 2016.
£88.8 million of cheque fraud was prevented, with fraud
losses in this category falling to £5.3 million. That totals a 28%
drop on the same period in 2016 and, indeed, is the lowest halfyear
total on record. Progress is clearly being made here.
Overall, there were 937,518 cases of financial fraud. This is a
figure that has remained flat compared with the year before.
The data emerges as the banking industry and Government
join forces to launch the next phase of ‘Take Five to Stop Fraud’ –
the national campaign that offers advice aimed at helping
customers to protect themselves from fraud. Launched on
Monday 2 October, the next phase of the campaign is focused on
educating the general public to recognise scams and confidently
challenge any requests for their personal or financial details by
remembering the phrase ‘My money? My info? I don’t think so’.
Katy Worobec (head of fraud and financial crime prevention,
cyber and data sharing at UK Finance) observed: “Tackling fraud
is a top priority for the entire industry, but we must remember
that financial fraud isn’t just an issue for the banking sector. Its
harmful effects stretch far and wide. This is why, when it comes
to prevention, protection or deterrents, the industry is committed
to taking a collaborative approach to curb such crimes and is
now launching the latest strand of the ‘Take Five’ consumer
campaign. Whether it’s banks refining their own security systems
or a retailer holding customer data securely, it must be stressed
that everyone has a part to play.”
UK Finance’s figures serve to illustrate the positive impact that
partnerships between industry and policing can exert in fighting
fraud. There’s still much work to be done, of course, and
particularly so in relation to identify theft and the criminality it
enables. It’s beholden upon us all to be extremely careful about
the degree of personal detail we share in the public domain.
Brian Sims BA (Hons) Hon FSyI
Editor
December 2012
5
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