Fraud is deception made for personal gain and comes in many forms and guises. The scale of fraud ranges from the most minor of offences, often made in error or without knowing that one is committing fraud, to major scams that pose massive threats to the economy and public safety in the form of serious organised crime including the financing of terrorism.
It is impossible to put an exact figure on the financial impact of fraud in the UK, let alone throughout the world. Where major fraudulent activity is reported, many minor scams go unrecorded. The Home Office estimates that the annual cost of fraud within the UK stands at approximately £14bn, according to a report published in 2000. Bearing in mind that much goes on under the radar, the true cost of fraud in the UK alone is potentially staggering.
According to the UK Payments Association (APACS), during 2005 the estimated cost of plastic card fraud equated to in excess of £439m. In 2005 APACS reported that over 141 million payment cards were in circulation within the UK. There was an average of 2.4 credit cards and 1.6 debit cards held per individual. Approximately £1.2m is lost to fraudsters on a daily basis; however figures in 2005 showed a reduction by 13% on the previous year assumed by the introduction of Chip and Pin. APACS concluded that 1 in 3 of us has been the victim of plastic card fraud and most frighteningly, they estimate that fraud occurs every 9 seconds in the UK. The highest risk of plastic card fraud is related to telephone and online purchasing i.e. the retail mail order industry. Despite the introduction of Chip and Pin, the increase in accessibility to purchasing products and services remotely via the internet or other remote means, should conclude that plastic card fraud is likely to increase. I intend to write further articles to argue why this should be the case.
Fraud is not limited to plastic cards the overall picture of fraudulent activities is never ending. As new technologies and prevention initiatives are implemented, the criminal mind, on a global scale, is always one step ahead of the game and ready to take advantage of gaps in security. More importantly, the criminal mind has a huge window of opportunity when you consider that most of the population is still not well enough educated as to the risks the internet and other remote channels pose to information security.
Why should people worry? Fraud - its never going to happen to me!
Card Cloning
Personal Identity theft
Corporate Identity theft
Phishing
Spear-Phishing
Pharming
Investment Scams etc, etc
All of the above have in-depth implications and are subjects that require exposure and further insight so that everyone can appreciate the scale of risk that fraud presents across the globe.
I have started this Blog website to motivate me in my studies and also in the hope that it will draw people from all continents to share and debate issues, provide useful resources and helpful information to individuals and businesses in the effort to combat the negative impact of fraud and the consequences of serious organised crime and the financing of terrorism. Awareness and action will pay dividends in the long term!
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