FICO: UK Card-Fraud Losses Record High Driven by CNP Fraud

In the UK, most of the losses stem from CNP or card-not-present channels, and the mains reason has to do with data breaches. If you’re on the lookout for secure and low-cost retail merchant services in the UK, this article is for you.

Retail Merchant Services & Fraud Losses

Fraud is growing dramatically all over the world, and it’s no surprise. Fraud is resulting in the loss of billions of dollars around the globe on a yearly basis.

When it comes specifically to CNP, the latter occurs after the fraudster steals a payment card or the information on the card. Card issuers, merchants, as well as acquirers that process card transactions from their merchant customers invest heavily to keep their business away from this type of fraud.

According to FICO, card-fraud losses in the UK reached a record £671 million ($881 million) in 2018. That was 19% more as compared to 2017. FICO’s annual European Fraud Map shows that the UK accounts for the largest card-fraud losses in Europe.

So, it’s no wonder that using cutting-edge fraud prevention services is critical to your success. For this, you just need to work with a reputable retail merchant services comparison company in the UK.

With a true payment expert that’s focused on terms, complaints, and integration, you can find the best payment-processing services in the country. Make sure the comparison company guarantees the most reliable honest snapshot of processors at the time of writing.

Payment-Processing Stats in the UK

The September 2018 fraud-related report in the Single Euro Payments Area (SEPA) reveals that CNP payments represented 73% of the overall card-fraud value in 2016. In 2016, CNP fraud-related losses accounted for €1.32 billion, thus making up most of fraud in the Eurozone.

When it comes to CNP fraud in the UK, the latter made up £506.4 million. This represents 76% of the total card-fraud value in 2018 and accounts for a +24% rise over 2017.

To sum up, payment fraud is a never-ending problem for merchants worldwide. Even though technology companies are working on creating better fraud-prevention techniques, online criminals go on mastering their skills to become more adaptive.

Author Bio: Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of merchant accounts and can best help you with retail merchant services. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie in his backyard porch, as should all right-thinking people.