Global Lessons from UK Finance’s Annual Fraud Report 2022
£1.2bn UK total fraud lossesin 2022
8% decrease from the previous year
Lesson 1.
Regulations positively impact scam losses
UK regulations requiring banks to reimburse for scam losses are proving critical for reducing financial harm. Other nations, including the US, Australia, and Singapore, are discussing similar regulatory measures.
Lesson 2.
Fraudsters aggressively shifted to physical card theft
Payment card fraud losses reached £556.3M, while card-not-present (CNP) theft saw the highest share of losses.
+6%
increase in
fraud losses
98%
of customers were
fully refunded
97%
Card ID Theft
compared to 2021
30%
Lost and Stolen
compared to 2021
Global trends will follow as consumers
resume pre-pandemic activities
Global trends will follow as consumers
resume pre-pandemic activities
Lesson 3.
Fraudsters move to mobile channels
Remote banking fraud losses reached £163.1M, a 46% decline from 2021. As more customers adopt mobile banking, banks must work to keep mobile channels secure.
Lesson 4.
Advanced technology prevents scams
Banks must verify customer identity, analyze and aggregate behavioral biometrics, device intelligence, and transactional patterns to identify and block suspicious behavior.
- Internet banking fraud: 76.3%
- Mobile banking fraud: 15.7%
- Telephone banking fraud: 7.9%
Lesson 5.
Track scam sources
Different channels present different challenges. For example, while social media sees more scam attempts, scam losses through telecommunication channels are much higher.
Originating Channel
Social Media
Telecommunications
Volume of Scams
58%
18%
Share of Losses
18%
44%
Tracing the source and assessing the financial impact of scams allows banks to enhance their fraud prevention. This knowledge also educates customers about potential scam threats across channels.
Ready to learn how to combat top fraud threats, including scams, card-not-present, account takeover, and more?
