Credit card fraud hits ten year low

The messages and warnings about the dangers of credit card fraud may finally be registering with the UK population, new figures revealed this week. According to the UK Cards Association, losses on UK cards fell by 17 per cent in the last year to their lowest level in a decade.

Increased consumer awareness and complex security schemes set up by the banking industry were credited with the reduction, reports the Daily Telegraph.

Various initiatives help to cut credit card fraud

Over the last decade, many new initiatives have been introduced to prevent card fraud in the UK. Online verification systems such as MasterCard SecureCode and Verified by Visa by cardholders have helped cut fraud, as has increasing use of fraud detection tools by retailers and banks.

The Daily Telegraph reports that ‘counterfeit card fraud, where a card is cloned or skimmed, dropped by 41 per cent to £47.6 million, while card-not-present fraud, when a card is used to buy by telephone, internet or post, fell by 15 per cent.’

Some card frauds still increasing

The newspaper reports that identity fraud figures remained unchanged at £38.1 million whilst fraud on cards intercepted in the mail rose by 22 per cent to £8.4 million.

“Phishing” attacks and phone banking fraud losses increased by 21 per cent 5 per cent respectively, indicating that much of the credit card fraud that remains simply involves consumers being tricked into disclosing their personal details.

Detective Chief Inspector Paul Barnard, head of the dedicated cheque and plastic crime unit, said: “While another drop in fraud is good news, the fraudsters haven’t shut up shop, which is why there can be no room for complacency on the part of the banking industry, retailers, law enforcement or indeed customers themselves.

“By taking simple steps – such as shielding our PIN with our free hand whenever we enter it, particularly at cash machines, being wary of unsolicited emails or calls, and making sure that our omputers have regularly updated antivirus software in place – we can make life harder for the criminals.”