FinancialFraudActionUK(FFAUK)recentlyreleasedtheir2016UKfraudperformancereport。

Whilstthereweresomelogicalchangesbetween2015and2016,Iwassurprisedatthefluctuationandsignificantshiftsfraudstershavemadeinordertocircumventexistingcontrols。

HerearesomehighlightsandlowlightsItookfromthereport。

Overall,UKfraudlosseswereupagainandthisisduetoacombinationofshiftsbetweenfraudtypesandanincreaseinthenumberofvictimsoffraud(cases)。

Whatdidsurprisemewastherateatwhichthegrosslossesincreasedcomparedtothevaluepreventedhaddecreased。

Forexample,Industrylossesincreasedby£13million(2%),yetthevaluepreventedwasreducedbyastaggering£380million(22%)。

Thismeansthatwepreventedfarlessoftheoverallfraudattackin2016thanwedidin2015。

Herearesomeotherinterestingstats:

Cardfraudwasupby9%from£568millionto£618million,andthenumberofvictimsincreasedby22%,yetalargepropositionofthiswassuccessfullymitigated。

Wehaveseenmanyofourclientsupgradingtheirsolutionsoverthepast12-18months,andinparticulartoFICOFalconFraudManager6。

Thisshouldbeevidencethattransactiondetectiontoolsareworking。



Remotebankingfraud(viainternet,telephoneandmobileapp)sawa19%reduction。

Casevolumesremainedflatcomparedto2015yetthelosseswentdownby£32million。

Welldonetothedigitalteamsandsecurityprofessionalsoutthereforsqeezingthelevelofopportunityforfraudsters。

Mobilebankingfraudthroughapps,whilepartofremotebankingfraud,rose104%,thelargestincrease。

It’sgreattoseetheadoptionofmobilebankingappsincreasing,butlet’smakesurewekeepaverycloseeyeonthisfraudtype。

Fraudhasneverbeenmorecross-pollenatedthanitisnow。

Fraudstersareexploitingthecustomerinsteadofindividualproducts。

Socialengineering‘scams’haveneverbeenmorechallenging。

Wealwaysknewthatfraudsterstargettheweakestlink,andnowthatweakestlinktrulyisus。

It’shumansovertechnology,emotionandtrustovermalware。

Ourfocusshouldremainontacklingcardfraudande-bankingrisks。

AtFICO,webelievethatthemosteffectivewayoffightingfraudisbyhavinganenterprisefraudstrategy。

TheFICO?

Falcon?

Platfomhastheabilitytocombinefraudriskdecisionsatacustomerlevelandremovesthesilosthathavebeeninplaceforfartoolong。

It’snotjustaboutthetransactionanymore,wehavetoconsideralldatasources。

Letsblockads!

(Why?

)

FICO