Intelligent Fin.tech Issue 19 | Page 11

NEWS

Adyen finds the UK retail sector loses £ 11.3 billion to payment fraud annually

Adyen , the global financial technology platform of choice for leading businesses , has published new research revealing the billions the UK retail sector loses to fraudulent activity annually .

Working alongside the Centre for Economic Business and Research ( Cebr ), Adyen found that the retail sector lost £ 11.3 billion to fraud in 2023 . On average , enterprises lost £ 1.4 million to fraudulent attacks , though luxury fashion retailers lost £ 2.8 million , clothing and accessory businesses £ 2.6 million and health and beauty brands £ 1.1 million each .
Over a third of UK businesses ( 35 %) fell victim to fraudulent activity , cyberattacks or data leaks over the last 12 months , which has increased by 37 % when comparing to 2022 ’ s numbers .
The research found that those businesses who predicted to grow their revenues by 50 – 100 % or more in 2024 also lost the highest amount to fraudulent attacks over the past 12 months (£ 3.8 billion ), as Adyen warns that fast growth must
be met with the right technologies in place to protect the business and customers .
Fraudulent activity is also impacting shopper wallets , with 33 % of UK consumers becoming a victim of payments fraud over the past year , compared to 23 % falling victim in 2022 . Payment fraud is defined as a fraudster stealing someone ’ s credit or debit card number or checking account data , and using that payment information to make an unauthorised purchase .

Klarna , the AI-powered global payments network and shopping assistant , has announced the launch of a new online initiative – Wikipink – aimed at setting new standards for transparency and responsibility in the credit and lending industry .

Klarna ‘ Wikipink ’ challenges US credit system with transparent data

Amid growing scrutiny over the practices of credit providers and increasing credit card debt in the US , Klarna steps forward to challenge the status quo by revealing comprehensive data on its services , including repayment rates , late fee rates and consumer age demographics , highlighting its commitment to fair and sustainable credit solutions . Additionally , Klarna commissioned The Harris Poll to conduct a survey among over 2,000 US adults to better understand how today ’ s consumers are using credit cards to address some of the biggest misconceptions in the industry .
David Sykes , Chief Commercial Officer , Klarna said : “ We still see too many of the traditional banks and credit card companies pushing products on consumers with exorbitant interest rates , hidden fees and revolving debt . It is very clear that the traditional credit card model does not work in the favour of the vast majority of customers . Wikipink is not just a showcase of Klarna ’ s achievements , but a call to action for the entire financial industry to prioritise consumer well-being . By sharing our data and practices openly , we aim to inspire a shift towards more ethical , transparent and consumer-friendly credit options .”
Find the full findings here : https :// www . klarna . com / international / press / klarna-wikipink-challenges-broken-us-credit-system-withtransparent-data / www . intelligentfin . tech
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