A lot of money passes through many different hands in the world of finance. Banks, brokers, and other intermediaries are responsible for ensuring every transaction is recorded properly. A new report by the FFA goes to show financial fraud costs the UK 2 million GBP ever year. A very disturbing number that causes a lot of concern.
Financial Fraud In The UK Is Growing
Whenever the overall scale of financial fraud increases compared to the previous, something is definitely wrong. For the United Kingdom, roughly 2 million GBP is lost every single day of the week due to financial fraud, according to a report by Financial Fraud Action UK. Moreover, the overall scale increased by 13.8 million GBP compared to 2015, indicating any countermeasures put in place are not helping much.
Tackling financial fraud has been a daunting task, to say the least. All of the UK’s banks and financial service providers are aware of the situation and will enforce changes over the coming months. A lot of progress is expected to make in the coming years, yet that doesn’t take away the fact the overall scale continues to evolve in the wrong direction.
Fraudsters have proven to be a rather creative bunch, especially where the United Kingdom is concerned. By using increasingly sophisticated methods of attack, criminals continue to circumvent bank technology and use the system to their advantage. This is anything but a positive development, as it continues to result in mounting losses. Finding a solution to this problem is direly needed, yet it appears fraudsters remain one step ahead at all times.
Luckily, the UK payment industry is capable of stopping most of the fraudulent payments before they even take place. By halting over 6 in 10 fraudulent payments, a lot of progress has been made. However, that still means over 3 in 10 fraudulent payments are executed properly, causing a lot of concern. It is evident the payment sector will need help from other players to increase their chances of halting fraudulent payments. Collaboration is the keyword in bringing fraudsters to their knees moving forward.
As one would expect, a lot of UK residents express concern over falling victim to financial fraud. Over seven in ten survey respondents indicate they are concerned, whereas 68% feels their family is at risk of financial fraud sooner or later. Most consumers do not discuss this problem with anyone, which makes it even more difficult for them to protect themselves. It is a very complicated topic to discuss, that much is certain.
There is no reason to be embarrassed after falling victim to financial fraud. Sharing stories and experiences are of the utmost importance, as it will help others in protecting their financial information. A dedicated Take Five campaign will be launched in the UK to raise awareness about financial fraud. Losing 2 million GBP a day due to fraud hurts the UK economy, which does not bode well for the future.
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