In Focus Risk
l There were 1,036,376 reported cases of unauthorised financial fraud, a rise of 10% compared with the year before. In an unauthorised fraudulent transaction,
the account holder themselves does not give authorisation for the payment to proceed and the transaction is carried out by a third-party. In the vast majority of cases, victims of unauthorised fraud would receive a refund.
Industry action The finance industry is tackling authorised and unauthorised fraud by: l Helping customers stay safe from fraud and spot the signs of a scam through the Take Five to Stop Fraud campaign, in collaboration with the Home Office. lWorking with consumer groups as part of the APP Scam Steering Group set up by the Payment Systems Regulator, to develop an industry code clarifying the circumstances in which the victims of authorised push payment scams will be reimbursed by their payments providers. l Joining government and law enforcement to deter and disrupt criminals responsible and better trace, freeze and return stolen funds. l Implementing new standards to ensure those who have fallen victim to fraud or scams get the help they need. l Delivering the Banking Protocol – a ground-breaking rapid response scheme through which branch staff can alert police and Trading Standards to suspected frauds taking place. The system is now operational
October 2018
The stolen data is either used by criminals to commit fraud directly or it is used to target individuals in impersonation scams
in every police force area and in the first six months of this year prevented £14.6m in fraud and led to 100 arrests. l Sponsoring a specialist police unit, the Dedicated Card and Payment Crime Unit, which tackles the organised criminal groups responsible for financial fraud and scams. In the first half of 2018, the unit prevented £25m of fraud and carried out 84 arrests and interviews under caution. lWorking with the ICO to establish guidance on how information about APP scams can be shared between UK Finance members, so they can protect customers, while calling for new powers on information sharing to allow banks to share data to detect and prevent financial crime better. l Hosting the government-led programme to reform the system of economic crime information sharing, known in the industry as Suspicious Activity Reports, so that it meets the needs of crime agencies, regulators, consumers and businesses.
www.CCRMagazine.com
Behind the data Intelligence indicates social engineering, in which criminals groom and manipulate people into divulging personal or financial details or transferring money, was the key driver of both unauthorised and authorised fraud losses in the first half of 2018. Impersonation and deception scams
are an all too common form of social engineering, where a fraudster contacts their victim by phone, text message, e-mail or social media pretending to be a genuine person or organisation, such as a bank, the police, a utility company or a government department. The criminal then either tricks the
individual into revealing personal or financial information, which is used to facilitate unauthorised fraud, or persuades their victim to authorise a payment to them. Data theft also continues to be a major enabler of fraud and contributor to fraud losses. This occurs particularly through third-
party data breaches, but also includes mail intercepts, malware and phishing. The stolen data is either used by criminals
to commit fraud directly, for example card details are used to make an unauthorised purchase online, or it is used to target individuals in impersonation scams. Criminals use the publicity surrounding
data breaches as an opportunity to commit fraud, sometimes posing as the affected organisation. CCR
39
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52