With massive consumer and credit fraud making headlines across the pond, a recent report shows UK businesses aren’t immune to the same style of privacy breaches reported by US giants Home Depot, Target, and JP Morgan.
Recent surveys are showing double digit increases in fraud and fraud losses over the last year. Fraud from remote card purchases (from transactions online, by phone or mail order) rose from £142 million to £174.5 million (or 23%) in the first six months of 2014. Remote banking fraud ballooned 59% from £35.9 million to £22.6 million in 2014*.
Officials say a key driver has been the growth of deception crimes. While chip and pin technology helped better secure cards, criminals looked for new ways to access private information and are using old school methods like phone calls impersonating officials, bin raiding or mail box theft, and high tech methods like computer viruses to steal information.
It’s not just consumers who should be concerned, every fraud loss costs businesses. There's also mounting evidence that fraudsters are finding company credit an easy target, taking advantage of larger corporate credit lines, easier access to credit and larger purchase thresholds, which will lead to an increase in business identity theft crimes.
In the face of mounting threats around the globe, UK businesses should start taking greater steps to protect themselves to avoid becoming the latest firm to make the kind of headlines CEOs want to avoid. Here are some prevention tips:
– Do a risk assessment: If you’ve never done one, you’re overdue. Even if you’ve done one in the past, every company should regularly audit their operations for potential vulnerabilities.
– Check all channels: In the UK, bin raiding, mail theft and other physical forms of theft are on the rise. Criminals will exploit any opening, so businesses need a comprehensive plan that covers all physical and virtual sources of private information.
– Watch online purchases: Be wary of large purchases from online customers you don’t know (as well as unusual orders placed by what seems to be an existing customer).
– Secure mobility: Mobile is a growing fraud channel targeted by cyber-criminals and needs special measures to safeguard private information.
– Watch global travel: Surveys are showing higher risks of fraud exist when travelling outside the UK so be vigilant when out of the country.
– Go beyond the requirements: Stay ahead of the data security curve and implement measures before they become law.
– Create a security culture: Everyone within a company needs to be aware of the risks and take steps to help protect your sensitive data.
Online information security threats are on the rise, and fraudsters are getting more creative in devising ways to gain access to private information. It's up to both businesses and consumers to be diligent when sharing personal information and take heightened measures to protect themselves, at home or when travelling abroad.
Jenny Green is an information security specialist and a content manager at document and data destruction company Shred-it UK
*Source http://www.financialfraudaction.org.uk/news-article.asp?genre=media&Article=2808&page=1 ]
