UK Banking Fraud Figures Fall, but Customers Pay the Price for Security, Finds PwC
New figures released by Financial Fraud Action UK have revealed that card fraud and online banking fraud losses have fallen, but that cheque fraud and phone banking fraud losses have risen in the first half of 2011.
William Beer, a director in PwC’s information and cyber security practice said: “While these numbers look very encouraging, it is important to recognise the price customers have to pay for safe online banking. Two-factor authentication has now become common, with customers having to carry a keyfob or other device in order to log into their bank accounts. While this has lessened the risk of fraud, it has introduced an element of inflexibility into the system and should not be seen as a silver bullet.
“The fact that the banks are doing such a good job in protecting their customers and themselves from online fraud means that organised criminals are now moving more towards other, possibly softer targets, such as the European Carbon Trading Market. It is also important to note that cyber-crime is global, as are many of the banks that criminals target, so figures based solely on UK fraud might not tell the whole story.”
He concluded: “The threats from the internet represent a massive challenge shared by public and private sectors worldwide. To meet the imperatives of the cyber era, we believe that public and private sector organisations will need to adopt new structures, roles and governance, while also engaging in close and continuing collaboration around the cyber agenda with other organisations.”