Feeds

Joe Public blames banks for credit card fraud

Will chip and PIN bolster public confidence?

  • alert
  • submit to reddit

Using blade systems to cut costs and sharpen efficiencies

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

The smart choice: opportunity from uncertainty

More from The Register

next story
NEW, SINISTER web tracking tech fingerprints your computer by making it draw
Have you been on YouPorn lately, perhaps? White House website?
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
LibreSSL RNG bug fix: What's all the forking fuss about, ask devs
Blow to bit-spitter 'tis but a flesh wound, claim team
Black Hat anti-Tor talk smashed by lawyers' wrecking ball
Unmasking hidden users is too hot for Carnegie-Mellon
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
Don't look, Snowden: Security biz chases Tails with zero-day flaws alert
Exodus vows not to sell secrets of whistleblower's favorite OS
Own a Cisco modem or wireless gateway? It might be owned by someone else, too
Remote code exec in HTTP server hands kit to bad guys
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.