Three trends from the UK Finance Annual Fraud Report
UK Finance‘s Annual Fraud Report for 2023 reveals some important trends in the fraud landscape. In all, UK consumers lost a combined £1.2 billion across all fraud types last year. In this article we look at three key trends identified in the report.
Banks are making progress in the fight against scams
The value of Authorised Push Payment (APP) scams declined by 17% compared to 2021. This is due to the increased focus by banks on detection, processes, and customer education.
Remote banking losses decreased by 18%
This may be due to the fact that consumers spent less time on digital devices after the COVID-19 lockdowns.
Remote purchase fraud continued to fall
Remote purchase fraud continued to fall, and was down 4%. This is likely an early signal of the impacts of PSD2 and Strong Customer Authentication, which require customers and fraudsters to authenticate more frequently than in previous years.
Summary
Overall, the report shows that the banking industry is taking steps to combat fraud, and that these efforts are having a positive impact. However, it is important to remain vigilant and to be aware of the latest fraud scams.
Looking to the future
We are only at the very beginning of seeing what impacts the powers of generative AI like ChatGPT and voice cloning technology have on the sophistication of fraud attempts, as fraudsters continue to adapt to the new fraud prevention measures being put in place.
We are likely to see in the near future attempts to trick accounts teams into making payments when instructed to do so over the phone, by a fraudster who sounds exactly like the Managing Partner of their firm. Firms need to stay as vigilant as ever when it comes to making payments.
Our SafePay solution makes it easy for law firms to request and receive payments instantly from their clients, helping to reduce the risk of fraud. To find out more, get in touch today.
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- Keep client account details away from money launderers and protect clients from payment fraud
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