01 Oct 2008
Losses incurred by the UK banking industry due to fraud hit £301.7m in the first half of 2008, compared to £263.6m in the same period in 2007, according to UK payments association Apacs.
Card crime abroad skyrocketed in the first half to £121.2m, representing 40 per cent of total card fraud losses and a 11 per cent increase on the £108.8m figure from last year.
Apacs said that, although chip and Pin has reduced UK banking losses by 35 per cent, overseas card fraud is still on the up as criminals steal card details at cash machines in the UK to use in countries where the technology is not yet available.
However, the organisation expects that the 2010 European roll-out of plastic cards and readers using chip-based technology will help mitigate the rising levels of card crime abroad.
Card-not-present fraud, which includes crime taking place over the phone and the internet, is also on the increase. Incidences rose by 18 per cent to reach a value of £161.9m for the first six months of the year.
And e-crime losses, mainly blamed on increasing phishing and spyware attacks, hit £21.4m during the period, representing a 185 per cent rise on 2007.
Overseas losses have risen by a massive 190%. (check out the APACS website).
The industry blame this on UK cards being cloned and used overseas "in countries that don't have chip & PIN".
The truth is crooks are capturing card data and PINs. and using the cloned cards not for face to face transactions but to hit ATMs at home and abroad.
The really sad part is that victims of fraud where a PIN has been used are often not being believed that they weren't careless with their PIN, and the poor old victim is picking up the cost of that fraud.
Therefore to deter crooks from hitting ATMs, and to reduce the risk of paying for the fraud yourself, consider getting yourself Chip & Signature Cards.
Posted by: James 01 Oct 2008
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