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New research from payments software company ACI Worldline has revealed that 12.1 percent of UK consumers have been victims of fraud, as it calls for an overhaul of fraud fighting strategies.
"As more consumers rely on digital and real-time payments, fraudsters are increasingly targeting the online space to steal sensitive information and top up any missing pieces by impersonating well-known organisations such as banks or government bodies,” said Jackie Barwell, fraud product manager at ACI Worldwide, adding that the advent of open banking and decentralised financial services offers additional room for the problem to grow.
A new report compiled by the US-headquartered company revealed that online fraud and digital wallet hacks now account for nearly 20 percent of UK fraud cases, while the number of those falling victim to confidence tricks has increased to 12.8 percent of all fraud cases.
The research comes after UK Finance, the UK’s banking and payments lobby group, revealed that British fraud victims lost £1.3bn in 2021 alone amid a surge in online fraud, with a near 40 percent rise in authorised push payment (APP) scams.
ACI Worldwide’s report reveals similar trends in Europe and around the world.
For example, in France, 13 percent of the population have reported being a victim of fraud in the last four years, and cases of confidence trickery increased to 11.5 percent of all cases.
In neighbouring Italy, 11.7 percent of the population has fallen victim to fraud and social engineering now accounts for 15.7 percent of all fraud cases.
Meanwhile, in India, which has the most used real-time payments system globally according to VIXIO analysis, fraud increased to 13.7 percent of all fraud cases in 2021, with 41 percent of the population falling victim to it in the last four years.
This is cause for a radical rethink of fraud fighting strategies and industry-wide collaboration, said Barwell. “It is an issue that banks cannot solve on their own any longer.”
“Financial service providers, social media giants, telco companies and enforcement agencies all need to work together to stop fraudsters in their tracks before the fraudulent transactions take place,” she said. “The answer to fighting fraud will not be found by working in isolation."
