Fraud, Wirecard and the Future of Fintech
Issue #6 of Net Interest, my weekly newsletter on finance industry themes, and welcome to all new subscribers. You join a growing community that includes some of the smartest investors and most curious people around. If you like what you read, please invite friends and colleagues to sign up. You could even direct them to my new website: https://www.netinterest.email/. Thanks!
Fraud, Wirecard and the Future of Fintech
I. Fraud
Finance companies have a unique relationship with fraud. They are at the same time victims of it, vehicles for it and occasional perpetrators of it.
As victims they are continually exposed to many small-scale attacks. Data from the UK suggests that fraud skims off 7.5p from every £100 spent on credit and debit cards. Over a billion pounds was pilfered through the banking system last year, with close to two billion more apprehended at the exit. Insurance companies wage a similar battle against false claims. Last year they detected fraudulent claims in excess of a bil…