New figures reveal that card fraud losses increased significantly in 2007 for the first time in two years.
2007 saw fraudulent credit and debit card transactions reach a record high with losses of over £532.2million incurred by British card holders.
The figures, published today by APACS the UK payment association, represent a staggering 25% increase on 2006’s levels and point to overseas fraud as the culprit.
More specifically, the issue lies with stole credit card details being used for fraudulent purposes in countries that have not yet implemented Chip and Pin technology, something that APACS are currently working with the newly formed Payments Industry and Police Joint Intelligence Unit (PIPJIU) and European banking industry to prevent.
While Chip and Pin technology has helped drive UK face to face card fraud losses down by over £145.8million since its introduction three years ago this type of crime is thriving overseas, increasing by 77% in 2007 and creating the equivalent of over £90.5million in losses last year alone.
Director of communications at APACS, Sandra Quinn commented:
“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. 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.”
APACS’ report also showed a 37% rise in losses as a result of fraudulent credit and debit card transactions carried out online and over the phone during the same period. However, this increase can largely be attributed to a change in the way we shop with over £30.2billion being spent online in 2006 alone.
APACS pointed out that as more people sign up to online card protection schemes such as Verified by Visa and Mastercard SecureCode losses of this nature should start to fall.
