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Plastic fraud down

Plastic fraud down

Category: Credit cards

Updated: 07/10/2009
First Published: 07/10/2009

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 It is now over 6 months old so the content may be out of date.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 committed on plastic cards in the UK fell by almost a quarter in the first six months of the 2009, figures from the UK Payments Administration have revealed.

In total, £223 million worth of fraud took place in the first half of the year, a drop of 23 per cent compared to the same period during 2008.

Fraud committed by phone, internet and mail fraud – known as card-not-present fraud – fell by almost half during the first half of 2009, the first time losses have fallen in the area.

Counterfeit fraud, consisting of skimming or cloning cards, also declined, albeit by only six per cent. Fraud committed on cards lost in the post fell by a third.

"These latest fraud figures are good news but we know there's no room for complacency," said Katy Worobec, head of Fraud Control.

"Whilst industry online security initiatives such as Verified by Visa and MasterCard SecureCode may be making their presence felt, the fraudsters are never going to shut up shop and there are emerging areas such as online banking fraud that has risen again."

Fraud committed online during the six months amounted to £39 million, a rise of 55 per cent.

The welcome declines in many areas of fraud have been partly attributed to fraudsters turning their attention to foreign issued cards which are not protected by chip-and-pin technology and have stronger currencies than sterling.

"The fact that we've seen a 36 per cent increase in the first half of this year in the amount of fraud being committed on foreign issued cards here in the UK adds some weight to this theory," said Worobec.

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 Any products featured may be withdrawn by their provider or changed at any time.

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