Banks toughen-up on victims of card fraud

by Gill Montia

Story link: Banks toughen-up on victims of card fraud

Credit card and identity theft insurer, CPP, is claiming that banks are becoming increasingly reluctant to compensate the victims of card fraud.

According to the company, over 12 million Britons have experienced some form of card fraud in the past year.

The firm’s research has also revealed that the average loss was in excess of £650, with one in 20 cardholders scammed for up to £2,000.

CPP claims there is evidence that banks are taking a tougher stance with defrauded cardholders.

For example, people are increasingly expected to provide proof that they have not made the purchases they claim are fraudulent themselves.

However, Apacs, the body that represents UK payment providers, disputes CPP’s figures.

While its latest statistics show that fraud involving UK credit and debit card holders increased by 14% in the six months to the end of June 2008, the occurrence is still well below CPP’s claim.

According to Apacs, the introduction of chip and pin has impacted on fraudsters in the UK but the benefit is being offset by cloned cards that are used overseas.

The body is reminding all cardholders that innocent victims of card fraud will be reimbursed by their bank, and that this free protection is provided under The Banking Code.