According to ONS’ most recent crime report, “Bank and credit account fraud” was the most common type of fraud experienced (2.5 million incidents or 75% of total fraud) in the UK, followed by “consumer and retail fraud” 6– such as fraud related to online shopping or fraudulent computer service calls (0.7 million incidents or 22% of total fraud). More than half (1.9 million incidents or 57%) were cyber-related.
Below Sundeep Tengur, Banking Fraud Solutions Manager, SAS UK & Ireland, comments on the progress that FS organisations are making on tackling fraud.
“It’s encouraging to see that the financial services industry is starting to give fraud the attention it deserves.
“With increasing instances of the misuse of alternative currencies like Bitcoin and difficulty in securing the electronic payments industry, the financial sector is rising to the occasion. But there is still plenty of work to be done as fraudsters continue to adapt their tactics.
“Whether it is against low-level bank account and card fraud or more serious attacks on organisations, financial services can’t afford to leave their doors open to fraud. They must continue to tighten defences and improve their capabilities to detect and resolve instances of fraudulent activity.
“To stay secure and instate confidence, organisations must derive actionable intelligence from the information available. Spotting the tell-tale signs of improper payments and transactions means they can get one step ahead and stop any financial or personal assets being compromised.
“Advanced analytics will be at the core of these efforts, crucial for helping firms mine their ever-increasing datasets for these invaluable insights. At the same time, artificial intelligence and machine learning will prove to be just as beneficial as more and more financial institutions are automating the process of fraud detection, improving the speed and efficiency of their response.
“The fraud factor is never going to go away. Yet those businesses that are proactively interrogating data will have a better chance of preventing fraud’s most devastating effects.”