Latest figures from the Office for National Statistics (ONS) has shown that the value of fraud is continuing to increase.
Commenting on the statistics Sundeep Tengur, Banking Fraud Solutions Manager SAS UK & Ireland said “Although the number of cases reported has fallen, recent research shows that the value of the UK’s fraudulent activity hit a 15-year high of £2.11 billion in 2017. Financial organisations have seemingly improved their game but let’s not forget that fraudsters are constantly gaining in sophistication, often at a faster pace. Even a single missed fraud attempt can result in a very costly hit.”
“Detection is no longer the end game for businesses and they need to learn and adapt to new fraud threats. The true challenge in the fight against fraud now lies in bolstering the ability to proactively detect and prevent fraud, ideally in real time. With new payment schemes such as SEPA instant credit transfer, and the disintermediation of the banking sector with PSD2, speed of execution is now more important than ever for an effective anti-fraud system. It’s therefore imperative to make better use of the data available and automate the hunt for suspicious activity. ”
“By using a hybrid analytical detection model and by implementing security in layers, it’s possible to spot the warning signs before assets are compromised and at the same time deliver operational benefits such as a smoother customer journey and lower investigation costs. In that regard, the adoption of machine learning and artificial intelligence can empower businesses to quickly identify and stop fraud attacks.”
Josh Gunnell, fraud specialist, Callcredit Information Group, said The latest ONS statistics clearly indicate that fraud remains a threat to every organisation in the country. With 3.2 million incidents of fraud in England and Wales and over half of these (1.8 million) being cyber-related, the worrying trend shows no signs of abating. This is especially pertinent considering the damaging impact the ongoing fraud threat has had on trust in organisations, with a majority of consumers we spoke to believing that fraudsters are always one step ahead of businesses.”
“To win back consumer confidence, which is key to long-term success, businesses need to do everything they can to keep data and identities safe. Implementing smarter, more dynamic fraud prevention strategies, such as artificial intelligence, alongside traditional fraud prevention methods – and communicating these to their customers – can go a long way towards achieving this. In addition, the importance of using behavioural and location data to provide fraud insights cannot be overstated.”