A Study of 3rd Party Fraud on UK Retail Banking Customers and Anti-fraud Strategy for UK Banks and Building Societies

Abstract

This dissertation was designed to investigate third-party frauds on UK retail banking customers, including card fraud, cheque fraud, online banking fraud, telephone banking fraud and banking phishing fraud and the fraud risk management frameworks for UK banks and building societies. The most common and prevalent bank fraud is card fraud which is perpetrated in many ways; counterfeit card fraud, card-not-present fraud, lost and stolen card fraud, card ID theft and card non-receipt fraud. The UK bank and building societies are required to have an effective fraud detection and prevention system in place to protect their customers from third-party retail banking frauds. The researcher employed positivism as a research philosophy for this study and used deductive approach to achieve research objectives. The quantitative research method was adopted for this research. However, this research showed some characteristics of a qualitative research method to study the fraud risk management frameworks for UK banks and building societies. Moreover, this research was carried out with the use of secondary data on third-party fraud on UK retail banking customers and UK card payments obtained from the Financial Fraud Action UK and the UK Cards Association from 2004 to 2016. The secondary data were analysed by using the SPSS software and Microsoft Excel. Findings were revealed for third-party retail banking fraud losses from 2004 to 2016. This research was conducted in line the Framework for Research Ethics (FRE) to make sure integrity, transparency and quality of this study. Therefore, findings can be reliable and valid. Irrespective of research limitations, the researcher managed to provide answer for all research questions and made suggestion for future research.