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Payment card fraud: growing again in UK and US as fraudsters turn to other methods. Use these fraud

The UKCards Association figures for fraud in the UK in 2012 show that:

  • low-tech deception crimes are the new front in the fight against fraud, as figures show 14% rise in fraud losses on debit and credit cards from last year's ten year low
  • despite the recent increase, fraud continues to remain low compared to previous peaks: card fraud losses drop 36%; the amount lost to fraud as a proportion of the amount we spent on our cards represents only 7p of losses for every £100
  • total net remote banking fraud losses for 2012 are flat, with telephone banking fraud losses falling by a quarter
  • cheque fraud losses rose 2 per cent.

The key findings from the 2013 AFP Payments Fraud and Control Survey on fraud in the USA were:

  • 61 percent of financial professionals indicate their organization experienced attempted or actual payments fraud in 2012
  • 27 percent of affected organizations saw the number of fraud incidents increase
  • 16 percent of those affected report that the incidence of fraud decreased
  • 87 percent of affected organizations had their checks targeted
  • 29 percent of those affected had corporate/commercial purchasing cards targeted, the next most common payments method targeted
  • the typical financial loss from payments fraud was $20,300.

Fraud prevention practices
These figures show fraud prevention is needed. In the USA companies are using many different techniques to prevent fraud, including:

  • cheques—positive pay to check if valid payment
  • ACH—dual controls in bank's online treasury portal
  • wires—dual controls in bank's online treasury portal.
  • cash withdrawals - allow only one bank branch to allow cash withdrawals/cashier cheques from only one bank account and only based on some type of "authorized" ID or call back arrangement or limit (i.e., no cashier cheque over set limit) plus daily reviews of transaction activity on that account.

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This item appears in the following sections:
Fraud Prevention
Minimizing Payment Fraud