Feeds

Foreign losses jack UK plastic fraud up to £535.2m

Negative cash flows

Build a business case: developing custom apps

Fraud abroad has pushed up losses on UK credit and debit cards following a two year fall, according to the latest stats from UK payments association APACS.

Card fraud losses last year rose 25 per cent from £427m in 2006 to reach a total of £535.2m last year, an increase mainly explained by a £90.5m rise in fraud overseas by criminals using stolen UK card details.

International fraud losses rose from £117.1m in 2006 to £207.6m in 2007. The majority of these losses came from countries yet to upgrade to chip and PIN. Fraud abroad now accounts for more than one third (39 per cent) of total card fraud losses. UK cash machine fraud almost halved from £62m in 2006 to £35m last year.

Card-not-present (CNP) fraud (a category that covers ecommerce and mail order transactions) also rose from £212.7m in 2006 to £290.5m in 2007, an increase of £77.8m (or 37 per cent). APACS said these figures ought to be viewed in the context of a huge rise in ecommerce spending. APACS vowed to further prioritise the fight against CNP fraud this year.

Cheque fraud losses in 2007 rose 10 per cent to £33.5m, after two years on the decline.

By contrast, online banking fraud losses fell a third to £22.6m, but card ID theft rose from £31.9m in 2006 to £34.1m in 2007. APACS said this fall is particularly impressive given that the volume of phishing incidents doubled last year. Advice on defending against phishing attacks can be found here.

APACS said Chip and PIN had a "hugely positive" effect on card fraud committed in the UK. Over the past three years (a period that covers the phased introduction of Chip and PIN), losses on face-to-face transactions on the UK high street fell by two-thirds from £218.8m in 2004, to £73m last year. Last year's figures also show that fraud on lost and stolen cards (£56.2m), and mail non-receipt fraud (£10.2m), are at their lowest levels for 10 years.

Counterfeit fraud losses have increased by 46 per cent, but the vast majority of this fraud is due to criminals stealing card details in the UK to make counterfeit magnetic stripe cards for use in countries yet to upgrade to chip and PIN, according to APACS. The UK banking industry hopes this type of fraud will become more difficult when the European banking industry meets its target to complete its chip card rollout by 2010.

"Although card fraud levels have now begun to go up again due to fraud abroad and card-not-present fraud losses, chip and PIN has proven to be an undoubted success in reducing card fraud on the UK high street. And, as more countries follow our lead and upgrade to chip and PIN, the opportunities for criminals to use our stolen magnetic stripe details overseas will decrease," said Sandra Quinn, director of communications at APACS.

Earlier this week a joint payment industry and police intelligence unit was established to fight all forms of banking fraud. The new Payments Industry and Police Joint Intelligence Unit (PIPJIU) aims to enhance the work of the Dedicated Cheque and Plastic Crime Unit (DCPCU), the specialist police unit fully sponsored by the banking industry. ®

The essential guide to IT transformation

More from The Register

next story
Rupert Murdoch says Google is worse than the NSA
Mr Burns vs. The Chocolate Factory, round three!
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
Know what Ferguson city needs right now? It's not Anonymous doxing random people
U-turn on vow to identify killer cop after fingering wrong bloke
Germany 'accidentally' snooped on John Kerry and Hillary Clinton
Dragnet surveillance picks up EVERYTHING, USA, m'kay?
Snowden on NSA's MonsterMind TERROR: It may trigger cyberwar
Plus: Syria's internet going down? That was a US cock-up
Who needs hackers? 'Password1' opens a third of all biz doors
GPU-powered pen test yields more bad news about defences and passwords
Think crypto hides you from spooks on Facebook? THINK AGAIN
Traffic fingerprints reveal all, say boffins
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.