UK online banking crime is on the rise again

UK online banking crime rises again as card and cheque fraud falls, article found on finextra on 14 March 2007.

“Fraud figures released today by Apacs, the UK payments association, show total card fraud losses fell by three per cent in the past year to £428m – a decrease of nearly £80m over the past two years. But online banking fraud is up 44% from £23.2m in 2005 to £33.5m in 2006.”

“The banking industry is also working on the next generation of fraud prevention solutions to help tackle fraud in non face-to-face transactions, such as online banking and telephone shopping.”

Online banking fraud keeps increasing again and again
In the UK online banking is now more popular than telephone banking, and internet banking confidence hit a high in January 2007. But we know people want a service which is easy to use, and they want to feel safe.

The trend has been steady for the last couple of months: phishing and online fraud are increasing. In december 2006, we learned that UK online banking fraud had increased by 8000% and the FSA expressed its concerns.

We can wonder if is it going to change people’s behaviour again? Are they going to switch back to Telephone banking?
I believe banks will manage to build trust and reinforce the confidence in online banking: they ackwnoledged security was one of the most important issues for british customers, and they know that being recognized as the most secure financial partner could help them increase their market share.

Feel more secure with the Chip and PIN
In France, we have been using the Chip and PIN for as long as I can remember. This is a reliable, easy to use, system which makes you feel more secure. In the UK, and in the US for that matter, you still just have to sign… Before handing out my card, I am always suspicious.

In 2006, the Chip and PIN has been introduced in the UK and it made more difficult for fraudsters to commit card fraud. This was an excellent initiative: people were already using their PIN to withdraw cash, now they just have to use the same PIN to pay with their debit or credit card. Even Amex introduced the Chip and PIN for their credit card.

What do you think?

Written by Christophe Langlois

Based in London for almost a decade, Christophe is an entertaining fintech marketing keynote speaker and a trusted advisor to the global financial services industry on the topics of digital marketing, innovation and B2B social media.

Christophe has contributed to over 140 events in 18 countries.

Currently, Christophe is advising a number of fintech startups on marketing and growth hacking and he is the Chief Marketing Officer of The Fintech Power 50, an exclusive annual programme helping fintech scale-ups to accelerate their growth globally.

Christophe's views on are his own.

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