News & Views - Savantor

The Fraud Industry

Thursday, 15 March 2007

The latest fraud figures released by APACS show total card fraud losses fell by three per cent in the past year to £428m – a decrease of nearly £80m over the past two years. This fall has been driven by a 13 per cent decrease in UK domestic fraud and the combined reduction of more than £45m in mail non-receipt and lost and stolen fraud.  But over the same time period, card-not-present fraud losses have increased by 16 per cent and now account for just under 50% of all card fraud losses. To put total fraud losses further into context, however, losses as a percentage of plastic card turnover equated to 0.095% in 2006 – significantly less than the 0.141% figure in 2004.

In the past year APACS has extended its fraud reporting beyond cards to include other payment industry fraud losses, including fraudulent encashments - the fraudulent withdrawal of cash over a branch counter and losses due to forged instructions - fraudulent requests to transfer funds from a bank account. . These non-card related payment fraud losses in total amounted to £72.2m in 2006. Contained within this figure are online banking fraud losses (the majority of which were forged requests), which totalled £33.5m in 2006. This is an increase of 44% year-on-year and has been driven by an increase in phishing incidents, which went up from 1,713 in 2005 to 14,156 last year.

FDI have also released a fraud study carried out across the EU which highlights the fact that fraud is perpetrated on a global stage, learned and passed from one part of the world to another. Apparently Banks' efforts to combat fraud are constrained by concerns about the customer experience and their own competitiveness. Data protection legislation is seen by many banks as a significant barrier to industry co-operation although this may be more perception than reality.  Significantly there is also a belief that retailers could do more to prevent fraud but are not motivated to do so as they do not suffer loss.  Maybe in the light of the T K Maxx issue this may change as we clearly need the cooperation of all parties to combat the increasing ability of fraudsters to operate as global franchises.

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Business and Platform Strategy

"Savantor successfully advised Rabobank during preparing of the platform migration for cards. Savantor demonstrated thorough knowledge of business processes and market players combined with a practical approach."

Evert Fekkes, Business Information Manager - Rabobank - Nederland

EMV Migration Planning

"It was a strategic imperative for the bank to be EMV compliant for our payment cards and the experience that Savantor brought to the company has proved to be invaluable."

Eddie Sweeney, Chief Technology Officer - AIB Bank - Ireland

Payments Platform Strategy and Sourcing

"We were in urgent need of external independent expertise to supplement our internal resources. Senior consultants had to quickly integrate with our team and actively contribute. Their experts quickly forged strong working relationships and delivered to our brief. We enjoyed working with them to develop our future platform strategy."

Evert R Fekkes, SVP - Payment & Savings Services - Rabobank Nederland

Acquiring market insight and strategy review

"Savantor brought an independent perspective and valuable insight that enabled Rabobank to ratify options for delivery and future growth and make informed business decisions in support of our target business model. Having used Savantor on a number of strategic projects, we have no hesitation in recommending their services to others."

Evert R Fekkes, SVP Payment & Savings Services - Rabobank - Nederland

Payment Specialists

"Working close with Savantor's professionals over the years in the payment arena. I appreciate the skills and knowledge these guys have and will surely engage with them when opportunities arise. The current engagement with Savantor is full to satisfaction and beyond."

Idsert Walta, Head of Banking Categories - Nordea - Scandinavia

Acquirer Specialist Support

"OP-Pohjola Group has used Savantors help in numerous different specialist projects differing from risk assessment to management tool creation to transaction analysis. We have been very satisfied by the quality of the service provided by Savantor's experts."

Kai Lindstrom, Head of Acquiring - OP-Services Ltd - Finland

New Fuel Card Guidelines

"Savantor successfully assisted Clear2Pay by providing specialist EMV expertise."

Marie Costers, General Manager - Clear2Pay Open Test Solutions

Platform Selection & RFP Management

"OP-Pohjola Group has used Savantor in both acquiring and issuing for platform/service provider research, RFI/RFP processes and subsequent contract negotiations. Savantor's approach and commitment have always been very professional and transparent. They have been of great help for the company in providing us important insights and background information beyond vendors sales speeches."

Kai Lindstrom, Head of Acquiring - OP-Services Ltd - Finland

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.