Research by ACI Worldwide reveals that one in ten UK adults has fallen victim to online fraud over the past four years.
With the rise of digital wallets and online payment systems, more individuals are becoming targets of sophisticated hacking schemes. ACI Worldwide’s investigation indicates that nearly 20% of current fraud cases in the UK involve digital wallet hacking, where external parties gain unauthorized access to users’ accounts and steal funds.
The report highlights that online fraud is not just a UK issue; it is a global concern. The study shows that 13% of France’s population, 11.7% of Italy’s, and a significant 41% of India’s population—where the use of digital wallets is booming—have experienced online hacking and scams in the last four years.
These findings follow a recent report from UK Finance, which revealed that the UK lost £1.3 billion to online fraud in 2021. The previous year also marked a 40% increase in authorized push payment scams, where victims are tricked into approving large bank transfers through social media or unsolicited calls.
Jackie Barwell, director of fraud product management at ACI Worldwide, emphasizes the growing threat as more consumers adopt digital and real-time payments. “Fraudsters are increasingly targeting the online space to steal sensitive information, often by impersonating trusted organizations such as banks or government entities,” she notes. “Open banking and decentralized financial services create additional opportunities for these schemes to flourish.”
In this evolving landscape, banks bear a crucial responsibility for protecting their customers. Cleber Martins, head of payments intelligence and risk solutions at ACI Worldwide, states, “Financial institutions must recognize that while advanced technology is vital for monitoring outgoing transactions, it is equally important for scrutinizing incoming payments to identify fraudulent accounts. There must be a heightened sense of accountability at the receiving end and improved data-sharing practices among all stakeholders—without violating privacy regulations. To combat increasingly sophisticated fraudsters, a comprehensive view of all payment activities is essential.”
Many banks are ramping up efforts to address online fraud, such as the Commonwealth Bank of Australia, which recently enhanced its AI technology to bolster scam protection for its users.
Barwell concludes, “A radical rethink of fraud prevention strategies and industry-wide collaboration is critical to regaining control. This challenge cannot be met by banks alone; collaboration among financial service providers, social media companies, telecom firms, and law enforcement is necessary to curtail fraudulent activities before they occur. The solution to fighting fraud lies in collective efforts rather than isolated actions.”