New figures show that in the first half of this year a record £174 million was lost on cards due to fraudulent payments.
According to Financial Fraud Action UK, the growing trend for online shopping has pushed up the figure to the largest half yearly total ever recorded by the organisation; an estimated £110 million. Online banking fraud losses have also surged by 71% compared with the first half of 2013, equating to a loss of £29.3 million.
When Chip and Pin was introduced it helped to improve fraud screening processes by banks. However, fraudsters are now turning their attention to overcoming this to obtain personal details, using deception tactics such as cold calling people or businesses posing as someone from a bank to trick their victims into revealing their personal information. This has been a key driver in the rise of e-commerce fraud. Once a victim’s details have been obtained, the fraudsters will target retailers whose online shopping protections are not adequate.
With around 70% of the UK population now shopping online, retailers need to improve their e-commence security methods, and take advantage of readily available security tools provided by the likes of Jumio.