Financial losses occurring due to credit card fraud have hit $880 million last year, according to analytics software firm FICO and its European Fraud Map.
The report says these are record numbers, and that the UK accounts for almost half of the entire sum that was lost across 19 countries surveyed - $1,830 million.
These numbers come a year after the UK managed to cut down on fraud losses by eight per cent, it was added. According to FICO, the main reason for the surge is due to an “epidemic” of high-profile data breaches.
Successful data breaches mean hackers get easy access to personally identifiable data, which makes their fraud attempts that much easier to pull off. Matt Cox, vice president for fraud management solutions in Europe at FICO says the company has seen “continued growth and diversification” of social engineering fraud, with techniques such as vishing, phishing and whaling”
Money laundering through mule accounts has also become a much bigger problem than before, given that criminals can move their stolen money between accounts and across borders a lot easier, especially with the proliferation of real-time payments – made possible by various payment services.
“The key to fighting online fraud lies in establishing practices to protect against data compromise,” said Cox. “Drawing on global networks of loss data and confirmed cases of fraud enables businesses to identify and prevent data breaches significantly earlier, reducing the customer losses and operational pressures that often result from these attacks.”