Card fraud falls but online losses up

Wednesday, 07 October 2009 11:20

Card fraud in the UK dropped by 23 per cent in the first half of the year, but online fraud rose 55 per cent.

Total card fraud losses stood at £232.8 million down from a peak last year, as losses due to skimmed and cloned cards fell.

However, card ID fraud rose 23 per cent, as criminals look at new ways of stealing.

Current fraud rates mean 0.1p is lost for every £10 spent on credit and debit cards.

Katy Worobec, head of fraud control at the UK Cards Association, said: "These latest fraud figures are good news but we know there's no room for complacency.

"The fraudsters are never going to shut up shop and, of course, there are emerging areas such as online banking fraud which has risen again."

She added online security initiatives such as Verified by Visa and MasterCard SecureCode were making their presence felt.

Ms Worobec explained the fall in card fraud was likely to be due to criminals moving on to foreign-issued cards without chip and PIN protection.

"We've seen a 36 per cent increase in the first half of this year in the amount of fraud being committed on foreign issued cards here in the UK adds some weight to this theory," she said.

Online fraud losses have increased as criminals use more sophisticated tactics to get customers' card details.

Malware programs are being used to target people's home computers and a 26 per cent rise in phishing - where fake emails are used to trick bank customers into giving away their details - was reported.

Consumers are urged to remain ever vigilant over emails purporting to be from their bank and to have up-to-date anti-virus and anti-spyware software, which some banks now provide free of charge to customers.

Tips to avoid becoming a victim of fraud:

• Don't let cards or card details out of your sight when making a payment.

• Check bank and card statements regularly and thoroughly. If you see an unfamiliar transaction, contact your bank or card company as soon as possible.

• Destroy, preferably shred, documents or receipts that contain personal financial information when you dispose of them.

• Do not keep your passwords, login details and PINs written down.

• Never disclose PINs, login details or passwords in response to unsolicited emails or phone calls claiming to be from your bank or the police.

Anyone who phones or emails and asks for your PIN is probably a fraudster.

• When entering your PIN in a shop or a cash machine use your free hand to shield the number.

• Register cards with Verified by Visa or MasterCard SecureCode.

• Only divulge card details in a telephone transaction when you have instigated the call and know the company.

• Ensure you have your card company's 24-hour contact telephone number with you - especially if you are travelling overseas - in case your card is blocked.

• Make sure your card company has up-to-date contact details for you, including a mobile telephone number, so they can speak to you if they need to.

• Have up-to-date anti-virus software and a firewall installed on your home computer.

• Access internet banking or shopping sites by typing the address into your browser.

Never go to a website from a link in an email and then enter personal details.

• Shop at secure websites by ensuring that the security icon (locked padlock or unbroken key symbol) is showing in your browser window.

• Log out after shopping and save the confirmation email as a record of your purchase.

• Keep your chequebook in a safe place and report any missing cheques to your bank immediately.

• Never accept a cheque or banker's draft from someone unless you absolutely know and trust them.

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