Fraud in the Payments Industry: The State of Affairs in the UK
It’s more important than ever to be aware of the different ways that you can become a victim of fraud, and the payments industry is no exception.
The payments industry in the UK has seen an increase in fraud. This is a problem that needs to be addressed, as it is costing businesses and consumers millions of pounds every year.
Services for monitoring the dark web are becoming more important for its capabilities for scanning and assessing if business data has been compromised. While companies are resorting to using more of this type of technology at their disposal, the act of fraud will not be ending soon.
The State of Payments Industry Fraud in the UK
Card skimming and remote banking cost the UK economy £783.8 million in 2020, a decrease of 5% compared to the previous year. £1.6 billion was the cost of unauthorised fraud in 2020 prevented by banks and card companies, which is the approximate equivalent to £6.73 in every £10 of attempted fraud being prevented.
Furthermore, in 2020 there were 149,946 incidents of Authorised Push Payment (APP) scams, as reported by UK Finance Members, leading to a gross loss of £479 million.
There are a few measures that businesses and consumers can take to protect themselves from fraud in the payments industry, such as the following:
1. Being Aware
The first step is always being aware of the different types of fraud that are out there. This includes knowing what to look for and being vigilant when making payments.
Especially, be careful when making payments online, make sure that you are using a secure connection, and never give out your personal information unless you are certain that the site is legitimate.
- Monitoring the dark web for potential threats
This can be expensive, but it is a necessary measure. Services for monitoring the dark web are becoming more common, and they can help identify potential threats before they become a problem.
Businesses should also make sure that their employees are aware of ‘how to spot suspicious emails, phone calls, and websites.
- Using two-factor authentication
Two-factor authentication is a process that requires two forms of identification in order to access an account.
This can help protect businesses from fraudsters who may have stolen or obtained login credentials.
Businesses should also make sure that they keep their software up to date and use updated security measures, such as firewalls and anti-virus software.
- Use Secure Payment Methods
Another way to protect yourself is by using secure payment methods. This includes things like credit cards, which have fraud protection built in, or services like PayPal, which offer buyer protection.
These types of payments are more protected against fraudulent activities than debit cards or wire transfers.
- Regularly Check Your Accounts
It is important to monitor your accounts regularly, even if you are not expecting any fraudulent activity. Logging in to check your statement every few days can help you detect suspicious activity, such as payments that don’t belong to you.
If you do see something wrong with one of your transactions, contact the payment provider immediately and report it. This will help you catch any suspicious activities as soon as they happen.
- Report any Fraudulent Activity
When you notice any fraudulent activity on your account, report it immediately to your bank and ask for a new card. It is important to report any fraudulent activity.
This helps businesses and consumers protect themselves from further attacks, and makes it easier for law enforcement agencies to catch the criminals involved.
- Training of Employees
Make sure that employees know what to look for and how they should react if a fraudster is trying to obtain information from them or their business.
Training should also include steps employees can take to protect against potential threats, such as two-factor authentication and using secure passwords.
Every day, new types of cyberattacks are being discovered while more criminals go online to steal identities or loot bank accounts.
Therefore, it is essential for businesses and consumers alike to be aware of the risks out there and to take necessary precautions to prevent being on the receiving end of being deceived.