UK credit card fraud 'funding terrorism'

Wednesday, 23 April 2008 12:00

UK credit card fraud is funding terrorist activities, it was claimed today.

A new report says that up to £500 million worth of funds are being diverted to insurgents through card fraud.

Organised criminal gangs and illegal drugs are also being supported by card fraud targeting UK retailers, the 3rd Man Group claimed..

The card fraud protection firm claims that the true cost of 'card-not-present' fraud is "far higher" than suggested by official statistics.

Card-not-present fraud refers to card fraud where the buyer is not physically present, such as in internet and mail order shopping.

"Card-not-present fraud is a major problem which is not going away and clearly is getting worse as criminals increase their efforts to steal from retailers," said 3rd Man Group chief executive officer Paul Simmons.

"We aren't just talking about petty thieves and opportunists here."

Mr Simmons added that the new appetite for card-not-present fraud among criminals could not come at a worse time for retailers already suffering from the effects of the global credit crunch.

According to UK payments association Apacs, card-not-present fraud cost Britain £291 million in 2007, a 37 per cent increase on 2006.

• Tags:
• card not present fraud
,
• credit cards
,
• news