FFA UK figures released: financial fraud lost £2m each day in 2016

News by Danielle Correa

Financial Fraud Action UK (FFA UK) has released official figures showing that the UK lost £2 million each day during 2016 as a result of financial fraud.

The figures show the overall scale of financial fraud was £768.8 million, up from £755 million in 2015.

The figures are released as all major banks and key financial services providers in the UK come together for the first time for a national day of action, marked Take Five Day, to raise awareness of how everyone can protect themselves from financial fraud.

Take Five Day is part of the Take Five campaign, which aims to put consumers and businesses back in control to help prevent financial fraud by encouraging them to “stop and think” before sharing any personal and financial details.

The consumer research included 2002 respondents aged 18 and up in the UK; it revealed that 74 percent of people are worried about falling victim to financial fraud while more than 68 percent expressed the same concern about their families. Seven in 10 (71 percent) admitted they had never discussed how to protect themselves against financial fraud with anyone.

“There are simple steps that we can all take to protect ourselves and those around us when it comes to financial fraud, so it is concerning that almost three quarters of people admit they have never discussed the issue. Taking that moment allows us all the opportunity to follow the simple advice which will better protect us from fraudsters,” said Tony Blake, senior fraud prevention officer, Dedicated Card and Payment Crime Unit (DCPCU).

A report from law firm Paul Hastings entitled “The Future of Payments” revealed that the value of non-cash payments is projected at £1.44 trillion by 2026, a 26 percent increase on 2016's figure of £1.14 trillion in the UK.

Ben Regnard-Weinrabe, partner in the Global Banking & Payment Systems practice at Paul Hastings told SC Media UK: “Whilst today's figures from Financial Fraud Action UK (FFA) indicate a two percent increase in financial fraud, the industry appears to be making progress in tackling the problem when one compares the 26 percent jump in such fraud the previous year. The FFA announcement accompanies the launch of a campaign to increase customer awareness and engagement, which is helpful as customers also have an important role in reducing financial fraud.

“Our ‘The Future of Payments' research shows that while there continues to be strong growth in new payment methods, with over 19 billion contactless transactions expected by 2026, consumers remain wary of the fraud risks. That said, those risks also exist for traditional payment methods, and providers of new payment methods are often at the vanguard of developing or adopting novel ways of addressing fraud risks, such as the use of tokenisation, which helps drive both product and security innovation.”

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