Credit Card Fraud Effectively Decriminalised

by Gill Montia

Story link: Credit Card Fraud Effectively Decriminalised

Following the implementation of the recommendations of the Fraud Review, this April, instances of credit card fraud are now handled by banks, which have to decide whether or not to involve the police.

The new measures, which apply to England and Wales, have been the subject of a BBC Newsnight investigation which has revealed that two police forces have not investigated a single credit card fraud cases since the changes.

This has led to accusations that the Government has effectively decriminalising the commonest type of credit card fraud, although some banks have reported that the changes have not stopped them reporting cases.

The Fraud Review called for a national centralised reporting system to help promote greater co-opertation between the police and the private sector. However, the establishment of the reporting centre is still in the early stages of planning.

No additional funding has been provided under the review, which is cause for concern, considering the fact that fraud squad officers have decreased in number across most of the UK. In 2006 only 400 police officers outside London were dedicated to fraud investigation.

Further alarm has been caused by comments made by Professor Ross Anderson, a security specialist at Cambridge University, who has suggested that banks may not report a crime when they have a conflict of interest and there could be opportunities to cover up fraud within the banking system.

Apacs, the UK trade association for financial institutions delivering payment services, takes a different view and believes the new rules are only replicating what had happened in the past.