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UK crime stats show 40% percent increase in financial fraud

Posted: 19 January 2017 | By Darcie Thompson-Fields

ONS crime figures show a three percent annual increase in fraud crimes in the UK, making it the most commonly experienced offence.

According to new data published today by the Office for National Statistics, there were an estimated 3.6m fraud and 2m computer misuses offences in the 12 months ended September 2016 in the UK.

The report showed an annual rise of three percent on fraud cases, while “other industry data on financial fraud, the vast bulk of which is unreported to the police, showed there were 1.9m cases of frauds on UK-issued cards”, representing an increase of 39 percent from the previous year.

“Today’s figures show that the challenge posed by fraud has only exacerbated. As the tools and tactics of the fraudsters continue to advance, it is clear that many businesses are still struggling to tackle this complex issue.” Commented SAS’s banking fraud solutions & financial crimes specialist, Sundeep Tengur.

Cyber threats

“Fraud is a persistent problem that impacts all businesses, regardless of size, turnover or stature. In light of recent and ongoing regulatory focus around securing electronic payments, mitigating cyber threats and improving data governance, businesses are being urged by policy-makers to do more to protect their customers from the scourge of fraud. Amidst reputational risks and potential regulatory fines, businesses are compelled to act but are often unsure of the best strategy to adopt.”

The figures demonstrate how the nature of crime has changed with the rise of emerging technologies. Tengur suggests that businesses use these technologies proactively to create multi-layered defences.

“Most businesses suffer from fragmented data sitting in operational silos which significantly impedes the efficacy of fraud detection. Data management is therefore a critical starting point. From a detection perspective, traditional solutions based solely on business rules are no longer a match versus the ever-increasing sophistication of fraud.

Effective fraud detection

To regain the edge, business have to factor in advanced analytics such as anomaly detection, machine learning or fraud networks as part of their solution. Through proactive interrogation of data and multi-layered defences, relevant actions can be taken before any financial or data assets are lost or compromised. Overall, businesses need to embrace a holistic approach to tackle the issue which caters for the main pillars behind effective fraud detection: data, technology and operational processes.”