The facts about fraud
The fight against fraud is proving to be a hard slog, with recent figures showing the criminals edging ahead.
A 2015 report by Financial Fraud Action1 showed a 6% increase in payment industry fraud in 2014, with total losses on UK-issued cards reached £479m.
Worse still, industry experts are tipping this trend to accelerate in the next three years. That’s largely due to the growth in remote channels such as e-commerce and m-commerce.
In 2004, remote purchases accounted for 30% of UK card fraud losses. By 2014, this had surged to 69%.
Card fraud losses split by type (as percentage of total losses)
“Managing payment fraud is certainly becoming more of a focal point across the payments industry,” says Paul Jevons, head of Barclaycard’s Payment Security and Fraud product team.
“An increasing amount of fraud is being prevented. Issuers, acquirers, gateways and merchants are all playing their part, but fraudsters are evolving at an alarming rate and becoming increasingly innovative in their approach.”
What’s fuelling the growth?
There are a number of factors behind the growth in payment fraud.
An expansion in payment and channel options has given criminals more areas to target, while the rise in cross-border shopping also opens the door to more potential fraud.
It’s also been hard to miss some of the worrying data breach headlines that have emerged in recent months.
And some retailers are leaving themselves open to attack. A frictionless experience might appeal to the consumer, but it’s important to make sure that security aspects aren’t neglected.
The card payment industry has introduced number of measures to help .
Services such as 3D Secure, the Address Verification Service, Card Security Code and Industry Card Hot File already offer protection, and future developments are expected too. These include real-time solutions that use sophisticated data science techniques to foil the fraudsters.
“At Barclaycard we are committed to reducing the impact of fraud on our merchants, utilising the tools that exist today but also developing new defences to protect against the developing threats,” says Paul.
“We work with all our partners to improve fraud prevention. We are also working with merchants to prevent the loss of card data from security breaches.”
What can you do?
If you can prevent the loss of cardholder data, you will reduce the likelihood of being hit by fraud. You’ll also cut the risk of being hit by financial loss or reputational damage as a result of a breach.
The Payment Card Industry Data Security Standard (PCI-DSS) helps you to do this.
PCI-DSS helps to secure the payment data of the cardholder and prevent it from being used fraudulently. Anyone taking card payments is required to adopt it.
PCI-DSS covers six key areas:
There are detailed requirements concerning storing and using card data, but some basic good practice can go a long way. Using a hosted payment page and keeping software up to date can add significant protection to your business.
Barclaycard can also help with any expertise you need to become compliant.
“We have a dedicated Payment Security team, all with PCI DSS qualifications. We are also on the board of advisors for the PCI security standards council,” says Paul.
“This means we are really well placed to offer merchants the support they need, as well as being able to help customers who do have a security breach continue trading and mitigate the impact on their business.”
Speak to us today to find out how we can help your business – 0800 0466814 *.
Please note that the views expressed in this article are personal opinions. Barclaycard cannot accept any responsibility or liability for reliance by any person on this article or any of the information set out in it.
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