In 2018, unauthorised financial fraud losses across payment cards, remote banking, and cheques in the UK totalled £844.8 million which was an increase of 16% compared to 2017.
However, banks and card companies prevented £1.66 billion in unauthorised fraud* in 2018, representing incidents that were detected and prevented by firms and is equivalent to £2 in every £3 of attempted fraud being stopped.
In addition to this, in 2018 UK Finance members reported 84 incidents of authorised push payment scams* with gross losses of £354.3 million.
Fraud losses on UK-issued cards totalled £671.4 million in 2018 – up 19% compared to 2017 with a total of £1.12 billion in card fraud stopped by banks and card companies in 2018, which is the equivalent to £6.27 in every £10 of attempted card fraud being prevented. The figures include fraud on debit, credit and ATM and is only cards issued in the UK.
If your business is compromised by fraud it can damage your business financially and also have a detrimental effect on your brand reputation within the marketplace.
Card not Present Fraud (Online & Mail Order/Telephone Order)
This type of card fraud is where fraudsters obtain consumers’ card details from things like discarded receipts, emails or account hacking and they use this information to purchase high value or desirable goods online, by phone or mail order. Click here for more on information on preventing card payment fraud at
How to prevent this type of fraud
If you are selling your goods and services online then it is important to ensure that your online system is PCI compliant and uses 3D secure which is an extra level of security. There are a few questions you should ask yourself before proceeding with the order. If you answer ‘yes’ to any of them, then you should take further steps to identify the legitimacy of the order:
If you are still unsure check the Industry Hot Card File to see if the card is registered.
Remember you have the right to decline the order if you suspect the transaction to be fraudulent, make every effort to try and contact the customer and verify their details before making your decision.
Although on the decline since the introduction of chip and pin in the UK, there is still a black market for the manufacturing of fake credit cards using genuine card details. The card details are copied from the magnetic strip of the genuine card using a device called a skimmer. This information is then transferred to the magnetic strip on a fake credit card, so the customer will not be able to use the chip and will ask for the card to be swiped. Although some foreign cards do not use the Chip and Pin you should be wary if a customer asks to swipe.
How can I tell if a card is fake?
Extra vigilance should be taken when accepting cards that are not chip and pin. Foreign cards and chip & signature cards will still exist. When swiping the card follow your ‘on terminal’ prompts.
Also, look out for these:
*Unauthorised fraud: In an unauthorised fraudulent transaction, the account holder does not provide authorisation for the payment to proceed and the transaction is carried out by a third party.
**Authorised fraud: In an authorised push payment fraudulent transaction, the genuine customer themselves processes a payment to another account which is controlled by a criminal.