UK Finance, an organization representing more than 250 firms across the banking and finance industry, has released a report on the state of eCommerce fraud in the UK in 2018.
The results are shocking. The organization’s research shows that banks prevented more than £1.12b in attempted unauthorized (fraudulent) card fraud transactions in the UK alone 2018. It’s a staggering number that underscores the problem fraud presents to nearly every sector of the economy.
“Fraud is a crime which poses a major threat to us all – it can have a devastating impact on victims and the money stolen funds even more damaging crimes such as terrorism, drug trafficking and people smuggling. Every business, from online retailers to social media companies, as well as the public sector, has a duty to work together to beat fraud and prevent stolen data getting into the hands of criminals,” said Katy Worobec, Managing Director of Economic Crime at UK Finance in a statement.
The report also states that losses due to payment card fraud were £671 million, an increase of 19% over 2017. Three-quarters of that total was due to remote purchases, including eCommerce transactions. With such a drastic year-over-year increase, its easy to see why merchants are more concerned with how to fight chargebacks than ever before.
Given the scope of the problem, the UK government is taking more of an interest in helping law enforcement fight fraudsters, encouraging partnerships and collaborations that will better protect customers.
“Fraud can have a devastating impact on victims and our new Serious and Organised Crime Strategy sets out how we will mobilise the full force of the state against this type of crime, said Ben Wallace, Minister of State for Security and Economic Crime. We are working with industry, law enforcement and regulators to reduce the number of fraud victims and to ensure they get support and advice on practical steps they can take to protect themselves.”