Credit card fraud down 23pc
CREDIT Card fraud losses fell by 23 per cent to £232.8m in the first half of 2009, compared with the same period last year.
Although the latest statistics show that card fraud is dropping, online banking fraud did rise over the period by 55 per cent to £39m.
Cheque fraud losses were down 26 per cent to £15.6m, according to Financial Fraud Action UK.
The body said the mixed-bag results showed there was no room for complacency on fraud.
“Whilst industry online security initiatives such as Verified by Visa and MasterCard SecureCode may be making their presence felt, the fraudsters are never going to shut up shop,” said head of fraud control Katy Worobec. “And, of course, there are emerging areas such as online banking fraud which has risen again.”
She said that much of the dip in card losses may be a result of fraudsters “realising that they can prosper more” by targeting foreign-issued cards.
“That includes particularly those without chip and PIN protection and which currently have stronger currencies than sterling,” she added.
She said she had noticed a 36 per cent increase in the amount of UK-based fraud being committed on foreign issued cards during the first half.
The Dedicated Cheque and Plastic Crime Unit – the police arm sponsored by the banking industry to stamp out card and cheque fraud across the UK – has helped to reduce card fraud, she said.
In the first half firms have saved £12.8m thanks to the fraud work, on top of the £315m in fraud savings to the industry as a result of the unit’s work since its launch back in 2002.