October 18, 2016
Of the £321.5 million ($392.1 million) lost by U.K. consumers in the first half of 2016 to payment card fraud, £224.1 million ($273.3 million) was card-not-present fraud, according to Financial Fraud Action UK (FFA UK). CNP fraud—the FFA UK calls it “remote purchase fraud”—for H1 2016 was up from the first half of last year by more than 30 percent. CNP fraud growth outpaced growth in total financial fraud—it accounted for more than 56 percent of all financial fraud losses (inflicted via payment cards, remote banking and checks). FFA UK officials blame the sharp uptick in CNP fraud on an increase in stolen payment card and personal information available from data breaches and the growth in e-commerce transactions in general.
“Banks use a range of robust security systems to protect their customers but as these systems become more sophisticated, criminals have increasingly been turning to scams and exploiting data breaches to con victims out of their personal and security information, as well as money,” said Katy Worobec, director of FFA UK. “Banks and merchants will continue to invest in advanced verification methods, including biometric validation and dynamic card security codes.”