UK Banks Have Reported Fraud-Related Losses of £1.3 Billion in the Second Half of 2022
- Published: 22nd September 2022, 10:18
The growing problem of fraudulent transactions involving mobile and online banking in the UK is more than a royal nightmare. According to a new analysis by MoneyTransfers.com, fraud losses at British banks increased 8% overall this year to 1.3 billion pounds.
The CEO of MoneyTransfers.com, Jonathan Merry, said,
The scale of financial crime in the UK is now at an unacceptable level. Fraud has a devastating impact on victims, many of whom are left struggling to make ends meet. The government and financial institutions must work together to find a way to protect consumers.MoneyTransfers.com CEO, Jonathan Merry
Fraudsters Getting Smarter
Phishing scams have evolved from yesteryear’s generic “bank impersonation” emails. Email and text message scams pose as your bank, directing you to a site that looks like the real thing. But the moment you click the link, your adversaries begin.
The con game is getting sophisticated. The fraudsters use Artificial intelligence to con banks and their clients. For example, “adversarial AI” has allowed cons to automating gathering information about targets to craft phishing attacks.
Adversarial AI replicates deep fake voices. Fraudsters use it to impersonate officials in approving wire transfer scams. Further, it can automatically create synthetic identities used to open new credit cards and bank accounts.
The hyper-digital age makes online purchases inevitable. Thus, businesses must create better ways to identify fraudulent payments.
Stopping Criminals Without Sending Users Away
Lenders have been battling increasingly complex fraud schemes against their customers for years. The problem has been getting worse as more people conduct their lives online.
However, there are new ways to detect and prevent fraud. For example, machine learning can be used to identify fraudulent behavior patterns. AI services can analyze a user’s digital footprint to help confirm their identity. Also, service providers can use geolocation data to track a user’s movements and thwart fraudsters.
Ultimately, the goal is to protect users without making them jump through hoops. In other words, security must be seamless.
The Way Forward
Financial institutions should tighten their fraud controls for their client’s safety and theirs. The industry should leverage artificial intelligence (AI) and machine learning (ML) technology.
The global fraud intelligence and AI/ML solutions let firms reliably separate between genuine and fraudulent users. It allows them to streamline the user experience for the former group without sacrificing security.
This problem is not going away anytime soon. The best way to protect yourself is to be vigilant. When in doubt, contact your bank directly. Do not click on any links or provide personal information unless you are sure you are dealing with a trusted source.