Card fraud falls to ten-year low - Credit cards - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Card fraud falls to ten-year low

Card fraud falls to ten-year low

Category: Credit cards

Updated: 09/03/2011
First Published: 09/03/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Fraud losses on UK credit and debit cards have fallen to their lowest annual total since 2000, new figures have revealed.

The UK Cards Association claimed banking industry initiatives are successfully keeping the fraudsters away from customers' cards and bank accounts.

Losses relating to UK cards of £365.4 million over the year were 17% down compared with 2009.

Better awareness amongst retailers about how to protect their chip and pin equipment from criminal attack and greater sign-up to online fraud prevention initiatives such as MasterCard SecureCode and Verified by Visa by cardholders and retailers were both credited with reducing card fraud.

An improvement in the sharing of fraud data and intelligence amongst the industry, an increasing use of fraud detection tools by banks and retailers, and the increasing roll-out of chip and pin abroad were also said to have played a part.

The research also showed that online banking fraud losses fell by 22%, thanks to the combination of customers better protecting their own computers with up-to-date anti-virus software and banks' use of sophisticated fraud detection software.

However, fraud relating to phone banking increased by 5%, with most losses resulting from victims being tricked into disclosing their personal security details through cold calling or fake emails.

The association said this suggests that some customers are still not aware that their bank will never cold call or email them to ask for login details and passwords.

"Whilst another drop in fraud is good news, the fraudsters haven't shut up shop, which is why there can be no room for complacency on the part of the banking industry, retailers, law enforcement or indeed customers themselves," said detective chief inspector Paul Barnard, head of the dedicated cheque and plastic crime unit.

"By taking simple steps, such as shielding our pin with our free hand whenever we enter it, particularly at cash machines; being wary of unsolicited emails or calls; and making sure that our computers have regularly updated anti-virus software in place, we can make life harder for the criminals."

Find the best credit card rates - Compare credit cards


Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Credit card mistakes cost borrowers £948m

At this time of year, many people could be turning to balance transfer credit cards in an attempt to overcome their Christmas debt. However, many of these borrowers could get caught out in the year ahead, and they could end up paying for it.

6 of the best balance transfer credit cards

Does the thought of opening your credit card bills fill you with fear? If so, you're not alone! Christmas may be over, but unfortunately, many people will still be paying for it, after turning to credit to cover the cost of their festive spend.

Get a better credit score for the New Year

A new year means a fresh start, and one of the best things you can do is take a cold, hard look at your finances – particularly when it comes to your credit score.
 
Close