#StarfishBanks. The Banking Fraud is evolving and disrupting the proper functioning of banks, costing the banks in billions across the globe. This presentation showers light on the phenomenon called banking fraud and how it has diversified across major economies of the globe. This presentation also lets the reader know about the future avenues of fraud and how it is going to evolve.

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Tentacles of Fraud
#StarfishBanks
CustomerXPs Software Private Limited

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Agenda
Fraud Trends in Major Economies : UK
Fraud Trends in Major Economies : USA
Fraud Trends in Major Economies : UAE
Major Developments and Impacts
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Fraud Trends in Major Economies : UK

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United Kingdom
 2008 was the peak year for fraud
 Loses due to Card Fraud (2013) - GBP 450.4 Million
 Losses currently 7.4p for every GBP 100 spent
 Card-Not-Present Fraud (CNP) (2008) - GBP 326.4 Million
 22% increase in 2013
 Fraudulent purchases - GBP 301.1 million

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United Kingdom
 CNP fraud at 67% from 54% in 2008
 Fraud techniques evolving with rise in:
 ID Theft
 ‘vishing’ attacks
 phishing attacks (UK is second to US in this fraud type)
 Chip, PIN and other advanced fraud prevention tools have proved to
be effective in preventing fraud
 Lost & Stolen cards account for USD 58.9 Million of Fraud in 2013

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Fraud Trends in Major Economies : USA

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United States of America
 50% of total global payment card fraud - costing USD 7.1 Billion (2013)
 Major retailer also took a hit adding USD 500 Million to total US Fraud costs
 In 2012, US accounted for 23.5% of the Global Payment Card Volume.
 Of which 47.3% was card fraud
 US has a strong dependence on Magnetic Stripe Tech - makes it prone to
high levels of fraud
 Visa & Mastercard - pushing for upgrade to ‘chip’

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United States of America
 Aite Group - end of 2015, 70% cards will have ‘chips’
 Decline in US global card fraud & migration to CNP fraud expected
 Robust, real-time fraud management solutions have already proved
effective
 By 2015, 50% of transactions will be over mobile
 Statistics show, USD 42.14 billion was done in 2012 as mobile e-
commerce
 High potential market in the coming years

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Fraud Trends in Major Economies : UAE

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United Arab Emirates
 Recent surge in card use followed by card fraud
 In 2014, led the credit card fraud countries list with 44%
 In 2013, poor fraud management led to 1 in 4 transactions being flagged as
fraud
 In 2014 Q4, 83% of UAE residents made purchases online.
 Profitable e-commerce growth:
 Consumers to be educated in fraud prevention techniques
 Quick response by banks & merchants to respond quickly & effectively to
secure transactions
 Protect customer experience

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Development and Impacts

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Development and Impacts
 Mobile banking is at great risk as Mobile devices store sensitive data. Tools
to prevent this data fraud of this nature is still in the development phase.
 At the moment, Android OS is the most vulnerable to fraud attacks.
 82% of business would leave bank in case of breach
 74% choose bank based on security reputation
 EMV terminals to reduce attacks on retailers’ POS systems, as soon as
deployment stage
 As data collection by devices, personal information is more freely available
which makes security for data more vulnerable.

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