Bank fraud losses hit 10 year low last year
Published 7 March 2012 by Lucy Bower
Debit and credit card fraud, as well as online banking fraud, fell to a ten year low last year, but telephone banking and cheques remain vulnerable to fraud.
Latest figures from the UK Payments Council indicate that debit and credit card losses due to fraud fell to £341.0 million in 2011, representing a ten year low. Online banking losses fell too, although telephone and cheque fraud rose slightly in 2011.
In 2010 banks suffered losses from fraud totalling £365.4 million, which fell by 7% to £341.0 million in 2011. Overall fraud losses dropped by 45% in the three years to 2011, reaching the lowest level since 2000.
The significant drop in fraud losses is thanks to joint efforts by the banking industry, partners and customers. The industry is making bigger efforts to prevent fraud and prosecute when it's detected. More retailers and consumers have signed up to anti-fraud measures, including MasterCard SecureCode, and customers are generally more aware of fraud following campaigns by the banking industry.
Online banking fraud also fell between 2010 and 2011 by £11.2 million, or 24%. More customers are protecting their online banking details with up-to-date anti-virus software and banks are using their own systems to detect fraud too. The measures seem to be working because there has been a drop in online banking fraud despite an 80% increase in phishing attacks.
Telephone banking and cheques seem to be more vulnerable to fraud than online banking and bank cards. Telephone banking fraud rose by 32% between 2010 and 2011, from £12.7 million to £16.7 million. Cheque fraud losses rose by £5 million over the same period to £34.3 million.