Residents of the United Kingdom lost more than £59.8 million to card fraud over the past three years, according to official data from the country’s authorities. On the positive side, losses dropped to £15.7 million in 2023, compared with £22.2 million the previous year. In 2021, the total loss was nearly £21.9 million.
Trustly primarily obtained the figures through a Freedom of Information request sent to the National Fraud Intelligence Bureau, which is run by the City of London Police.
The Menace of Card Fraud
“Our research shows that a shocking number of people are falling victim to fraud,” said Anisha Sudra, Head of Fraud at Trustly. “It’s concerning that thousands of people lose millions of pounds to fraud in the UK each year. The sophistication of payment fraud is ever-growing, and shoppers must remain vigilant to potential scams.”
Most victims over the three years fell prey to credit card fraud, followed by debit card fraud. According to the revealed figures, credit card fraud victims lost over £33 million between 2021 and 2023, while debit card victims lost £24.15 million.
Authorities also reported £2.6 million in losses involving multiple cards. Although the losses with store cards are the lowest, at £69,161, they remain concerning.
The Staggering Number of Card Fraud Victims
The data further revealed that the total number of credit card fraud victims over the three years was 6,284. In 2023, the number of credit card fraud victims was highest, at 2,171, compared to 1,997 in 2022 and 2,116 in 2021. On the other hand, the number of debit card victims dropped to 1,278 in 2023, from 1,377 and 1,426 in the previous two years, respectively.
Due to protections in place, such as chargeback provided by card providers, many victims may have recovered some of their losses; however, those amounts remain unknown.
“We believe technology offers a transformative approach to preventing fraud by creating a more secure and transparent payment environment,” Sudra added. “The new Payment Systems Regulator (PSR) rules will provide further protection for consumers against fraud.”
The new PSR rules, set to take effect on 7th October, will require banks and fintech firms to fully reimburse victims of authorised push payment (APP) fraud up to a cap of £415,000, with the cost split between the sending and receiving firms. However, the UK Treasury and the Financial Conduct Authority have raised concerns about the looming fraud refund scheme, which could present significant challenges to the financial sector.
Residents of the United Kingdom lost more than £59.8 million to card fraud over the past three years, according to official data from the country’s authorities. On the positive side, losses dropped to £15.7 million in 2023, compared with £22.2 million the previous year. In 2021, the total loss was nearly £21.9 million.
Trustly primarily obtained the figures through a Freedom of Information request sent to the National Fraud Intelligence Bureau, which is run by the City of London Police.
The Menace of Card Fraud
“Our research shows that a shocking number of people are falling victim to fraud,” said Anisha Sudra, Head of Fraud at Trustly. “It’s concerning that thousands of people lose millions of pounds to fraud in the UK each year. The sophistication of payment fraud is ever-growing, and shoppers must remain vigilant to potential scams.”
Most victims over the three years fell prey to credit card fraud, followed by debit card fraud. According to the revealed figures, credit card fraud victims lost over £33 million between 2021 and 2023, while debit card victims lost £24.15 million.
Authorities also reported £2.6 million in losses involving multiple cards. Although the losses with store cards are the lowest, at £69,161, they remain concerning.
The Staggering Number of Card Fraud Victims
The data further revealed that the total number of credit card fraud victims over the three years was 6,284. In 2023, the number of credit card fraud victims was highest, at 2,171, compared to 1,997 in 2022 and 2,116 in 2021. On the other hand, the number of debit card victims dropped to 1,278 in 2023, from 1,377 and 1,426 in the previous two years, respectively.
Due to protections in place, such as chargeback provided by card providers, many victims may have recovered some of their losses; however, those amounts remain unknown.
“We believe technology offers a transformative approach to preventing fraud by creating a more secure and transparent payment environment,” Sudra added. “The new Payment Systems Regulator (PSR) rules will provide further protection for consumers against fraud.”
The new PSR rules, set to take effect on 7th October, will require banks and fintech firms to fully reimburse victims of authorised push payment (APP) fraud up to a cap of £415,000, with the cost split between the sending and receiving firms. However, the UK Treasury and the Financial Conduct Authority have raised concerns about the looming fraud refund scheme, which could present significant challenges to the financial sector.
This post is originally published on FINANCEMAGNATES.
