FICO Fraud Map shows UK card fraud losses hit record £671 million in 2018

Analytics software firm FICO has released its annual interactive European Fraud Map, which shows that the UK’s card fraud losses hit a record £671 million in 2018. The data from Euromonitor International and UK Finance compares these losses against previous years and 18 other European countries.

The UK’s card fraud losses were the biggest in Europe, and account for nearly half of the €1,616 million (approximately £1,400 million) lost to fraud across the 19 countries in the map. This development comes just a year after the UK managed to cut fraud losses by 8%.

“The threat of fraud in the UK has been persistent and growing extensively over the past seven years,” stated Matt Cox, vice-president for fraud management solutions in Europe at FICO. “The sheer volume of attempted fraud has meant that, although more fraud is being prevented now than ever before, and that it’s being caught earlier in the attack cycle, the total value lost is still on the rise.”

The primary cause of these record-breaking losses is an epidemic of high-profile data breaches.

“Personal information lost in high-profile data breaches means it’s easier than ever for criminals to impersonate individuals and businesses, so we all need to be more vigilant, both personally and as an industry,” asserted Cox. “We’re seeing the continued growth and diversification of social engineering fraud, which uses techniques like vishing, phishing and whaling.”

Money laundering via mule accounts also remains a challenge for banks. With the proliferation of real-time payments – made possible by Faster Payments in the UK and SEPA Instant Credit Transfer across Europe – criminals can move and retrieve their ill-gotten gains between accounts and across borders on a near instant basis. This makes fraud harder to follow, catch and remediate once it has taken place.

“The key to fighting online fraud lies in establishing practices to protect against data compromise,” outlined Cox. “Drawing on global networks of loss data and confirmed cases of fraud enables businesses to identify and prevent data breaches significantly earlier, thereby reducing the customer losses and operational pressures that often result from these attacks.”

*Further information is available at http://www.fico.com/europeanfraud/

About the Author
Brian Sims BA (Hons) Hon FSyI, Editor, Risk UK (Pro-Activ Publications) Beginning his career in professional journalism at The Builder Group in March 1992, Brian was appointed Editor of Security Management Today in November 2000 having spent eight years in engineering journalism across two titles: Building Services Journal and Light & Lighting. In 2005, Brian received the BSIA Chairman’s Award for Promoting The Security Industry and, a year later, the Skills for Security Special Award for an Outstanding Contribution to the Security Business Sector. In 2008, Brian was The Security Institute’s nomination for the Association of Security Consultants’ highly prestigious Imbert Prize and, in 2013, was a nominated finalist for the Institute's George van Schalkwyk Award. An Honorary Fellow of The Security Institute, Brian serves as a Judge for the BSIA’s Security Personnel of the Year Awards and the Securitas Good Customer Award. Between 2008 and 2014, Brian pioneered the use of digital media across the security sector, including webinars and Audio Shows. Brian’s actively involved in 50-plus security groups on LinkedIn and hosts the popular Risk UK Twitter site. Brian is a frequent speaker on the conference circuit. He has organised and chaired conference programmes for both IFSEC International and ASIS International and has been published in the national media. Brian was appointed Editor of Risk UK at Pro-Activ Publications in July 2014 and as Editor of The Paper (Pro-Activ Publications' dedicated business newspaper for security professionals) in September 2015. Brian was appointed Editor of Risk Xtra at Pro-Activ Publications in May 2018.

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