23 Apr 2008
Online criminals are helping to fuel card fraud far beyond previous estimates, according to new research.
UK payment association APACS reported that losses caused by "card not present" fraud – involving transactions conducted over the phone, internet or mail – totalled £290.5m in 2007.
But a joint investigation by the BBC and security firm The 3rd Man Group has found that the true figure came to £500m, if failed attempts were factored into account.
The introduction of chip-and-PIN caused major headaches for card fraudsters, said 3rd Man chief executive Paul Simms. But this has shifted criminal attention to areas where a user does not have to be physically present at the point of purchase.
"Card not present fraud is a major problem which is not going away and clearly is getting worse as criminals increase their efforts to steal from retailers,” said Simms.
“We aren’t just talking about petty thieves and opportunists here. This money also funds illegal drugs, organised crime and terrorism.”
Overall card fraud rose 25 per cent in 2007 to a total loss of £525m, according to APACS.
Massive increase in fraud crimes should make the government and banks realise that their data protection and Chip and PIN systems are diverting rather than deterring fraud crimes.
This shows that fraud will continue to grow until they exploit KEY and PIN system described on website www.xwave.co.uk which will deter BOTH identity and card fraud by making signature and PIN systems reliable and foolproof.
Fake documents have made our signature system unreliable while skimmers and pin-hole cameras etc. have made PIN system unreliable. We have option to make signatures reliable by personalising them with ID stickers and option to use Card Key Code to make PIN system reliable to make use of stolen and skimmed cards meaningless. By ignoring to exploit this system banks are only letting fraud crimes grow.
ID KEY system will eliminate the need for us to protect our personal and card details since fraudsters will be deterred from misusing these stolen details.
Proposed ID KEY can be treated as a reliable international ID card because it will personalise signature and PIN number to only the right individuals in any country.
We hope that the government and banks will appreciate these details and exploit KEY and PIN system before it is too late to stop a fraud boom.
Posted by: Roger 24 Apr 2008
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