| the use of credit and debit cards increasing all the time, | | | | face-to-face fraudulent transactions by two thirds and |
| the issue of card fraud is always an important | | | | other types of credit card fraud are at their lowest |
| consideration. Credit card providers and card | | | | levels for ten years. |
| processors are now focusing their attentions on | | | | The police forces are now taking card fraud very |
| providing ever more sophisticated security systems to | | | | seriously with specialist units looking at different areas |
| stay one step ahead of the fraudsters, but there will | | | | of crime. In response to the finance industry’s |
| always be an onus on the customer to act in a | | | | claims that a significant proportion of card fraud was |
| responsible manner to prevent fraudulent use of their | | | | carried out by insider sources in forms and retailers, |
| card. | | | | greater involvement of the Police has reduced this |
| In the UK APACS, the Association for Payment | | | | problem. However |
| Clearing Services, monitors and reports on credit card | | | | Further information on how to avoid card fraud is |
| fraud in a six monthly report and the statistics show | | | | provided by the website managed on behalf of the UK |
| that card fraud had reduced by 25 per cent in the two | | | | banking industry by APACS. |
| years following 2004 but 2007 brought a 25 per cent | | | | Here you can read about various approaches being |
| increase largely caused by higher levels of phone, | | | | adopted by the industry to prevent credit card fraud. |
| internet and mail order fraud, where the card holder is | | | | Information is also provided by the different card |
| not present and an even bigger increase in counterfeit | | | | issuers about how customers can protect themselves |
| card fraud, where cards are skimmed or cloned. This | | | | against loss due to fraud. The credit card companies |
| type of fraud increased by almost 50 per cent and | | | | discuss various types of card transactions and how |
| made up over a quarter of all card fraud. | | | | customers can protect themselves during them. |
| By far the biggest area for concern is card fraud that | | | | Card issuers now have sophisticated fraud detection |
| takes place abroad. Of the £535m lost due to | | | | systems that can quickly identify any abnormal |
| card fraud in 2007 nearly 40% of that loss is | | | | transactions on your account and flag them up to their |
| conducted abroad using stolen UK credit card details. | | | | fraud detection departments. These “out of |
| Although chip and PIN has contributed to the reduction | | | | character” transactions may only be small |
| of fraud in the UK there are many countries yet to | | | | initially as, apparently, the criminals will try out the card |
| implement the technology. The introduction of the | | | | issuers detection systems with a small amount before |
| technology to the UK is claimed to have reduced | | | | attempting a large hit. |