Mixed news on the banking fraud front

Fraudsters are being caught out as the number of reported credit card fraud cases is decreasing. However, research also suggests they are returning to traditional methods of fraud such as phone and cheque fraud.

Financial Fraud Action UK published figures today showing that credit card fraud decreased in the first half of the year compared to the same period in 2010.

Online banking has also seen a reduction in fraud rates. However, cheque fraud appears to be on the rise.

Between January and June 2011, the total fraud loss on UK cards was a staggering £169.8 million. However, this is down 9% on the same period last year. This is the lowest total for eleven years.

The development in fraud protection software has largely helped the reduction in fraud rates.

Signature card payments were often subject to fraud and criminals are now returning to more old fashioned, low-tech scamming techniques.

Online banking fraud saw a whopping 32% fall in the first 6 months of the year, which is great news for all those who rely heavily on handling their finances in this way.

Lloyds TSB recently launched the latest version of their mobile banking application. The Lloyds TSB Mobile Banking service enables easy access for customers ‘on the go’ by logging on with their existing internet banking details.

However, there has been much controversy over the security of online banking with smartphones.

If a phone is connected via a VPN, networks are exposed to malware which could be hacked. The majority of people do not currently have security software on their phones. Banking fraud via telephones also increased by 48% during the period between January and June, 2011. With sensitive information often available on smartphones, criminals are being spoon-fed everything they need for fraud.

Alternatively, the research found that fraudsters would dupe unsuspecting customers into believing they were working for a bank or even the police to get them to disclose their financial security details.

Cheque fraud has also increased, despite the fact that the Payments Council agreed to drop plans to phase out the cheque in July.

One of the safest options for your finances could be a prepaid credit card. A prepaid card can be used to make purchases and withdraw cash. As they do not have overdraft or credit facilities, the card-holder can only spend the balance on the card.

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Posted by: WarrenWilson Categories: Finance Tags: , , , Comments Off on Mixed news on the banking fraud front

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