Sales from ecommerce are still surging from the pandemic — but where there’s payments, there’s payment fraud.
While payment fraud used to involve riskier crimes like stealing a physical card or breaking into physical premises, cybercriminals can now take your account details from a computer on the other side of the world. According to a report by cybersecurity firm Gemini, 115m stolen debit and credit card details were posted on the dark web in 2020 — and that’s not the only way people’s money is at risk.
New data from UK Finance found there is “an epidemic of fraud” in the UK and unauthorised fraud losses across payments, remote banking and cheques totalled more than £730m in 2021.
But there are solutions, from tighter security measures to identify that customers are who they say they are to open banking, a potential solution for several key types of payment fraud.
What are the types of payment fraud, and what can be done to prevent it?
1. Card-not-present fraud is the most common type of card fraud
Some payment fraud uses stolen bank details, e.g. card details. The most common type of card fraud in the UK is card-not-present fraud where fraudsters purchase products or services online by using stolen card details.
“By far the biggest problem in the UK with fraud is still unauthorised card transactions,” Jack Wilson, head of public policy at TrueLayer tells Sifted. “That’s the type of fraud that everyone will be…
