The International Fraud Awareness Week will be taking place until November 17.

The Insurance Information Institute reported that, approximately 16.7mn victims of identity fraud were noted last year.  Matt Phillips, VP Banking UK/I, Diebold Nixdorf , said: “Financial fraud is an industry wide problem, which is why the financial sector invests millions each year to prevent it. In fact, card fraud at UK cash machines netted criminals £37.2 million in 2017, with brute force physical attacks adding even more to the fraudsters’ coffers. Looking more widely, in 2017 fraud involving payment cards, remote banking access and cheques cost £731.8mn.

“While good security and changing spending habits have contributed to a drop in card fraud at ATMs since 2016, other types of fraud remain substantial.

“Secure ATMs remain crucial if we are all to enjoy safe access to our cash, and there are synergies in fraud prevention across digital and physical platforms, thanks largely to digital transformation. For example, artificial intelligence and advanced analytics can be used in multiple settings to spot patterns (of dubious transactions, for example) and trigger action accordingly. This allows companies to protect their own interests, as well as those of financial institutions and end users.”

Fighting fraud for many reasons

“Financial institutions are very keen to prevent fraud – and not only to avoid financial loss. In this era of 24-hour news and social media, any data breach or successful attack can severely damage a finance company’s brand and reputation. Such disaster is likely to be swift and comprehensive, with reports and criticism spreading like wildfire. The challenge that faces these companies is huge: attacks can come on various scales, sometimes from individual hackers but more often from organised criminal gangs who may have vast numbers of bots set up to relentlessly bash away at the barriers between the criminals and the data or money they so badly want to steal.”

What does the future hold?

“Just as the financial landscape is constantly changing, the financial fraud landscape is changing with it. Looking ahead, there will be greater collaboration between conventional financial service providers and third parties not previously involved in the fight against fraud. This is because as we move away from cash and even card payments we will increasingly adopt smartphone- or other device-based authentication, such as biometrics, when we undertake transactions or access online banking. Thus, providers of apps, fingerprint sensors and iris scanners will become part of the fraud prevention effort.

“We are also likely to see a greater focus on the responsibilities of the customer, for with great convenience comes greater responsibility. As the public becomes increasingly aware that they will not always have fraudulent transactions refunded, and consumers’ understanding of cybercrime and how to stop it grows, it is to be hoped that everybody will play their part in this fight, and keep us all that crucial step or two ahead of the criminals.”