New data from UK Finance found there is “an epidemic of fraud” in the UK and unauthorised fraud losses across payments, remote banking and cheques totalled more than £730m in 2021.


1. Card-not-present fraud is the most common type of card fraud

Some payment fraud uses stolen bank details, e.g. card details. The most common type of card fraud in the UK is card-not-present fraud where fraudsters purchase products or services online by using stolen card details.

2. One third of chargebacks are estimated to be fraudulent

Another type of fraud is confusingly called friendly fraud — or fake chargebacks — but it isn’t very friendly, it’s where fraudsters manipulate a system put in place for security.

3. Account takeover fraud is increasing

Another kind of fraud leading to losses is when fraudsters take over an account by using phishing techniques or bots to trick people into giving over their username and password before they change the details and lock them out.

According to Experian, account takeover fraud has increased by more than a third over the past few years.


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