Seven fraud facts and figures
Issue 355 | 4 July 2022
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Fraud: We need to fight together
Fraud: The definitive overview
Any report featuring the title ‘the definitive overview of payments industry fraud’ is never going to make easy reading and the newly published report by UK Finance for 2021 certainly does not make comfortable reading - an end of year report that can only conclude that we must all do better in our fight to thwart the fraudster.
UK Finance publishes both the value of fraud losses and the number of cases. The data is reported to us by its members which include financial providers, credit, debit and charge card issuers, and card payment acquirers.
Payment method utilised for APP fraud
The UK Finance data shows the type of payment method the victim used to make the payment in the authorised push payment scam.
Faster Payments was used for 97 per cent of fraudulent APP scam payments.
CHAPS was the least common payment method, representing only 0.2 per cent of cases, the high-value nature of transactions using this payment type meant that it accounted for four per cent of the total value.
Facts and figures
UK Finance’s fraud report is full of facts and figures - here’s seven fraud facts that will make your eyes water:
A total of over £1.3 billion was stolen through fraud and scams in 2021.
Unauthorised financial fraud losses across payment cards, remote banking and cheques totalled £730.4 million in 2021 (decrease of seven per cent compared to 2020).
There were 195,996 reported incidents of Authorised Push Payment (APP) scams in 2021 with gross losses of £583.2 million, compared with £420.7 million in 2020 (an increase of 39%).
65.3p in every £1 (£1.4 billion) of attempted fraud was stopped by banks and card companies in 2021.
Fraud losses on UK-issued cards totalled £524.5 million in 2021 (seven per cent fall from £574.2 million in 2020).
Faster Payments was used for 97% of fraudulent APP scam payments.
Despite the imposition of a voluntary reimbursement scheme on the UK's major banks, just 47% of victims had their losses reimbursed.
Fraud: We need to fight together - Payments:Unpacked newsletter.
See the Big Picture in Real-Time Payments
ACI Worldwide, the leader in real-time payments, has published their latest Prime Time for Real-Time report. Now featuring 53 global markets the report provides unparalleled insights and expertise on the trends, technologies and initiatives driving real-time success.
It has been proven out that, combined with the perpetual motion of mobile utilization and the digitization of everything, real-time payment systems offer a foundation for economies to be more dynamic.
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As real-time payments continue to redefine our global economy, this essential report delivers unparalleled insights to help you chart your path to real-time success:
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Download the ACI report: Prime Time for Real-Time Global Payments Report.
There’s always a lightbulb moment
David-Jan Janse, Co-Founder and CEO of SurePay, is a seasoned business strategist with over 25 years of experience in business transformation and lean startup thinking leading to new value propositions. He loves to spot new business models based on innovation and customer behaviour.
In 2016, David-Jan Janse and Marcel Rienties founded SurePay, the market leader in Confirmation of Payee (CoP).
There’s always a lightbulb moment before the beginning of a new venture. What was that moment for you?
While still at Rabobank Group, a company where I was working since the 90s, Marcel Rienties and I went to the local train station and interviewed tonnes of people about online banking, and what hurdles, if any, they were experiencing. The message was clear; payment fraud prevention.
David-Jan Janse, Co-Founder and CEO of SurePay
With a best in class Conformation of Payee solution here is a chance to meet the co-founder of SurePay in his recent interview with Just Entrepreneurs.
Federal Reserve delays ISO 20022 cutover by two years
The Federal Reserve is to delay the implementation of the new ISO 20022 payment messaging format by two years to 2025.
The Fed had previously set a deadline of November 2023 for a cutover to the extended payment message format, in line with its implementation by Swift and other global money transfer networks. The agency says that it will instead opt for a one-day cutover on 10 March 2025.
The Fed says the revised timeline is in response to bank concerns that it was prioritising the introduction of the new messaging format to the detriment of the roll out of the FedNow real-time transfer network, which is also set to debut in November 2003.
As well as shifting the deadline, the central bank has also set out a revised testing strategy to help banks to stagger workloads and alleviate resource constraints.
“The board believes that shifting the implementation date for the migration of the Fedwire Funds Service to the ISO 20022 format to March 10, 2025, rather than targeting November 2023 as proposed, should mitigate commenters’ concerns regarding resource constraints in light of the launch of the FedNow Service,” the Fed board says.
In SWIFT’s 10th edition of ISO 20022 in bytes for payments they report that with less than six months till CBPR+ general go-live, they are seeing increased readiness activities from the community, with interface upgrades accelerating and increased testing - ISO 20022 in bytes for payments: Less than six months till CBPR+ general go-live!
All retailers must allow electronic payments by 1 July (in Belgium)
All commercial establishments in Belgium must allow electronic payment by 1 July 2022 as part of the action plan against fraud introduced by the Government in spring of this year.
While the proposal by Finance Minister Vincent Van Peteghem has been written into law, a fiscal support package for the retail trade has not, De Tijd reports.
Cash payments aren’t banned, but customers must always be able to pay digitally. Merchants must offer at least one form of digital payment but can choose which, meaning it needn’t be a bank card but could instead be a payment app like Payconiq.
Old dogs, new tricks: adapting central bank balance sheets to a world of digital currencies
The Bank of England are looking at how a central bank digital currency (CBDC) for the UK might work. Andrew Hauser argues a CBDC could have a big impact on the Bank of England’s balance sheet. We need to understand these impacts, and build them into the design of CBDCs and our operational toolkits.
Webinar: Variable Recurring Payments
The UK Competition and Markets Authority (CMA) has required the nine biggest UK banks to implement the Variable Recurring Payment (VRP) APIs to enable customers to sweep money between their accounts by July 2022. But what exactly are VRP and sweeping, and why are they such an important development for businesses who collect online payments?
What are the benefits of VRPs and Sweeping? What are the use cases live today? What needs to happen next to keep the momentum going? What are the most exciting use cases that are emerging and are most likely to emerge over the next year? Are there any main risks that might need to be tackled?
Join the Payments Association Insights webinar to learn the real-world business benefits of VRPs for sweeping and hear our industry leaders and subject matter experts assessing what do customers stand to gain from VRP, what does VRP mean for merchants and where is the opportunity for banks. Plus, you will have the chance to have your questions answered.
Register for the Payments Association’s Variable Recurring Payments webinar on the 21 July 2022:
GoCardless has announced its plans to acquire Nordigen, a freemium open banking data provider. This move will open GoCardless to a wider covering in its account-to-account network, more than 2,300 banks in 31 countries.
Finastra launches BNPL alternative - providing customers with an alternative payment option to Buy Now Pay Later (BNPL). The solution is differentiated from BNPL as it applies to higher value purchases, whereas BNPL is typically unregulated and limited to those below £1,000 or £2,000.
Rowing in unison to enhance cross-border payments − speech by the Bank of England’s Victoria Cleland.
What is a Direct Debit? Read Access PaySuite’s step-by-step guide which details the most common #transactions people use Direct Debits for, how to go about setting up Direct Debit and the rules in place to protect customers.
The new world of payments is all about change (not that kind). The pandemic accelerated our embrace of digital payments — and that, in turn, appears to have shifted how we think about money, from how we make payments to what we even view as currency, according to Mastercard’s New Payments Index.
Video: The future of payments - It was my privilege to be the keynote speaker at the Fintech North 'future of payments' conference in Manchester. My talk outlined developments in the payments landscape, how the pandemic accelerated digitalisation and encouraged us to embrace digital payments.
Remedies: Card-acquiring market review - It may have taken some time but the Payment Systems Regulator (PSR) have today (29 June 2022) published a Provisional Decision in relation to remedies following their card-acquiring market review (CAMR).
Covering Request to Pay, Confirmation of Payee, card payments, Direct Debit, payments and A2A payments Payments:Unpacked is pleased to work with the following partners:
Request to Pay: Join the secure payment revolution with Answer Pay.
Card Payments: Card Industry Professionals supporting Businesses to Accept Payments In-Store, Online or Over The Phone!
Payment Solutions: Seamless, secure & affordable payment solutions that enable organisations of all sizes to accelerate growth & innovation from Access PaySuite.
Payments: ACI Worldwide - New Payments Architecture, ways ACI can help you today, to support your migration to NPA.
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