A Marcus Evans Blog Special Feature – Marcus Evans Scam Series

UK Scams around online bank fraud and card fraud is a problem for everyone.

“National fraud crackdown must end the ‘victimless crime’ myth” Fraudulent insurance claims add £40 a year to the insurance premiums paid by honest customers
http://www.cpaaudit.co.uk/pdfs/ML&FCSummary09Q1.pdf

In the first half of 2008, a total of £300 million was lost in reported or measured card fraud representing an increase of almost 15% compared with H1 2007. In the UK the largest problem remains with schemes that use hoax and fraudulent ID and details to obtain legitimate credit or indeed manufacture fake cards.

Online banking fraud, a similar but more sophisticated operation usually conducted through phishing, saw an increase of 185% compared with 2007. Complaints and queries from customers regarding fraud are significantly up also.

The use of card information to create a copy, and most likely in instances where a Personal Identification Number (PIN) and the card number and type are available can be used to create a cloned card. The fake is then passed over to be used in machines and for purchase transactions in a variety of locations and typically overseas.

By the end of the year the total losses for 2008 were reported to be over £609 million pounds, and new information are due to be released by APACS – the UK payments association is due for the first of 2009.

Money Damage Through UK Card Scams Overseas?

Data shows overseas scams were up 100% in two years. UK card losses overseas totalled £229.9m in 2008, compared with £117m in 2006.

Scam and Fraud in 2009

Notable stories of 2009 include organised fraud schemes operating in US, India and target at the UK.

• http://news.bbc.co.uk/2/hi/americas/8206305.stm - US man ’stole 130m card numbers’
• http://www.cpaaudit.co.uk/pdfs/ML&FCSummary09Q1.pdf - CPA Audit - Money Laundering and Financial Crime
• http://www.nytimes.com/2009/09/01/nyregion/01cyber.html - Five More Accused in Credit Card Fraud Investigation
• http://news.bbc.co.uk/2/hi/business/davos/7862549.stm - Cybercrime threat rising sharply

If you are responsible for business protection, are a scam and fraud expert, then the Marcus Evans Scam & Fraud Series would be interested to hear from you.