Credit card fraud falls as online banking fraud soars

by Gill Montia

Story link: Credit card fraud falls as online banking fraud soars

Losses from fraud involving UK credit and debit cards fell by 23% during the first six months of 2009, compared to the same period last year.

According to industry body, Financial Fraud Action UK, the value of this kind of fraud declined to £232.8 million, with losses on card-not-present fraud (which involves purchases over the Internet and by mail order) falling by 18% to £134 million.

Both Chip and Pin plus new measures such as Mastercard Secure Code and Verified by Visa, have been instrumental in the overall improvement.

Fraudsters have tended to focus their activities outside the UK, in countries where Chip and Pin is not fully implemented and where currencies are currently stronger than sterling.

However, the first half of the year also saw a 55% increase in online banking fraud, to £39 million, with reported phishing attacks increasing by 26%.

Malware, which enables a fraudster to log a victim’s key strokes, has added to the rise in activity.

Finally, cheque fraud fell by 26% in the six months to the end of June, to £15.6 million, reflecting the continued decline in the use of cheques.