Europe winning battle against fraud, but UK has a way to go
Data breaches, and recent months have brought about a number of huge financial losses through malware attacks.
In 2013 alone, there was 1,367 confirmed data breaches, and recent months have brought about a number of huge financial losses through malware attacks such as Go Zeus and CryptoLocker, not to mention the recent Trojan attack on a top European bank, writes Paul Thomalla
It’s led to cyber criminals stealing nearly half a million Euros in a single attack. This malicious activity all serves as a timely reminder that banks need to remain vigilant in detecting and preventing similar criminal activity.
Organised fraud rings are evolving and constantly devising new methods of creatively stealing funds and identities, whilst consumers are increasingly losing confidence that their financial institutions can protect them. In fact, our new consumer fraud research found that less than one-third of consumers across EMEA have absolute confidence that their financial institution can protect them from fraud.
In the UK, banks are making big strides to improve customer confidence with the implementation of new services such as chip and pin, geolocation, and emergency cash when cards are stolen. The introduction of “notify me” alerts is also helping people stay on top of their money. Further, they’re working to educate their customers against risky behaviours. In time, all of these practices will help boost trust from customers as they begin to feel their money is safe and secure.
That in mind, despite the UK having among the highest fraud rates in Europe (based on our aforementioned research), UK consumers can begin to look on the bright side, with those who have experienced card fraud in the last five years down 6% since 2012. Of course, financial institutions still have a lot of work to do, both in terms of educational and preventative measures, but they are making good headway.
Ultimately, combating fraud is a two way street. Banks must make sure they are doing everything possible to avoid criminals stealing money from their customers, while customers must take every precautionary step available to them to limit the level of risk as best they can.