Feeds

Joe Public blames banks for credit card fraud

Will chip and PIN bolster public confidence?

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Over half of all consumers (54%) feel that banks and building societies aren't doing enough to protect them from credit and debit card fraud, according to the results of a survey published today.

Although the survey (conducted last month) didn't quiz members of the public on the Chip and PIN programme, a serious omission in our view, it still provides some insight into public perceptions about credit card fraud.

The chip and PIN system is designed to guard against credit card fraud by requiring customers to tap in a four digit number - rather than signing a payment slip - when paying for their goods. The system is currently on trial in Northampton but will be nationwide by 2005, as credit cards wiith embedded smart cards are issued throughout the UK.

Depending on your point of view, this is either a great leap forward in the fight against fraud or a scheme that will shift the burden of proving fraud has taken place onto consumers while moving criminal scams from the high street onto the Internet.

But we digress.

According to today's survey of UK adults into attitudes towards credit card fraud, Joe Public blames banks - not law enforcement agencies - for a failure to prevent fraud. Card fraud is one of the fastest growing crimes in the UK. A record £424.6 million of fraud was committed on UK cards in 2002, up from £411.5 million in 2001, according to UK trade association the Association for Payment Clearing Services (APACS).

Only seven per cent of the 1,000 respondents to the survey, commissioned by data mining firm SPSS and conducted by market research outfit ICM, have ever been victims of ATM/credit card fraud.

Only 16 per cent of those questioned said that they thought the police have chief responsibility for preventing fraud. And just one in 50 (two per cent) of those quizzed said retailers had to take charge of combating credit card fraud.

The main responsibility for preventing fraud was placed on the shoulders of card issuers i.e. banks and building societies.

Meanwhile only a quarter of respondents (28 per cent) to the study feel enough is being done to identify and deal with fraud in general.

The study was conducted in May, a month after the start of the chip and PIN programme. The effect of the programme on public attitudes to fraud prevention will be an interesting point for subsequent studies.

Shame SPSS didn't think to ask about it though.

SPSS' research is part of the company's ongoing campaign to identify consumer perceptions to fraud, understand the most common security breaches, and help businesses combat the phenomenon. ®

Related Stories

Credit card firms 'profit from Net fraud'
Small.biz needs help with chip and PIN
Smart credit on UK cards. Will it cut fraud?
Schoolgirl turns tables on email credit card fraudster
E-fraud costs retailers millions

Internet Security Threat Report 2014

More from The Register

next story
'Kim Kardashian snaps naked selfies with a BLACKBERRY'. *Twitterati gasps*
More alleged private, nude celeb pics appear online
Home Depot ignored staff warnings of security fail laundry list
'Just use cash', former security staffer warns friends
Hackers pop Brazil newspaper to root home routers
Step One: try default passwords. Step Two: Repeat Step One until success
UK.gov lobs another fistful of change at SME infosec nightmares
Senior Lib Dem in 'trying to be relevant' shocker. It's only taxpayers' money, after all
Spies would need SUPER POWERS to tap undersea cables
Why mess with armoured 10kV cables when land-based, and legal, snoop tools are easier?
TOR users become FBI's No.1 hacking target after legal power grab
Be afeared, me hearties, these scoundrels be spying our signals
Snowden, Dotcom, throw bombs into NZ election campaign
Claim of tapped undersea cable refuted by Kiwi PM as Kim claims extradition plot
Freenode IRC users told to change passwords after securo-breach
Miscreants probably got in, you guys know the drill by now
THREE QUARTERS of Android mobes open to web page spy bug
Metasploit module gobbles KitKat SOP slop
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.