Card Fraud Rises Again
Card fraud abroad hugely impacts overall losses despite a two-year fall, according to the Association of Payment Clearing Services (APACS). Figures released today show that in 2007 total card fraud losses amounted to £535.2m, a rise of 25 per cent in the past year.
One of the main contributing factors lies outside the UK. There has been a 77 per cent increase (up £90.5m) in overseas fraud committed by criminals who have obtained stolen UK card details. This is happening in countries that have yet to adopt the chip and PIN security system. Over one third of card fraud loss is now happening overseas.
APACS’ Director of Communications, Sandra Quinn, says, “Although card fraud levels have now begun to go up again due to fraud abroad and card-not-present fraud losses, chip and PIN has proven to be an undoubted success in reducing card fraud on the UK high street.”
As mentioned earlier, fraud overseas accounts for a 77 per cent increase whilst UK fraud figures report a 6 per cent rise. UK cash machine fraud has dropped by 44 per cent and mail non-receipt fraud has also dropped, down 34 per cent. On the other hand, phone, internet, and mail order fraud or “card-not-present” has risen by 37 per cent and counterfeit card fraud has risen by 46 per cent.
Despite total figures for UK fraud in 2006 being £309.9m, down from £356.6m in 2005, there was still a 6 per cent rise in overall card fraud in 2007 at £327.6m. It is believed that once other countries adopt similar card protection technology, as we have here in the UK, fraud loss numbers are expected to decline.
Sandra Quinn of APACS goes on to say, “And, as more countries follow our lead and upgrade to chip and PIN, the opportunities for criminals to use our stolen magnetic stripe details overseas will decrease.”
Published on March 12, 2008
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