Cheque and card fraud drops

Card fraud drops

In the first fraud fall recorded since 2006, losses on UK cards reduced by 28 percent in the period between 2008 and 2009, according to the UK Cards Association. In that time, cheque fraud also dropped significantly to GBP£29.8 million, a decrease of 29 percent. However online banking fraud still remains on the increase. 

Despite an increase of 14 percent in online banking fraud (due largely to criminals using sophisticated methods like malware), the majority of figures released demonstrate a positive outlook for stifling fraudsters when it comes to using credit and bank cards. In total, UK card fraud fell 28 percent, or GBP£170 million. Skimming and cloning halved to GBP£80.9 million, and card not present (CNP) fraud dropped to 19 percent, down to GBP£266.4 million.

Hole in the wall and face-to-face retail recorded dips in fraud losses down 27 percent, and 20 percent respectively. Card fraud abroad dropped by almost half.

The Association highlighted the work of the Dedicated Cheque and Plastic Crime Unit as a reason for the success, alongside several industry initiatives like chip and PIN and the use of sophisticated fraud detection tools by retailers and banks.

"We recognise that cards will always be targeted by criminals, so we are determined not only to continue to prevent, detect and deter those who are behind this type of crime, but also to make sure that innocent victims don't lose out." said Melanie Johnson, chair, UK Cards Association.

For telephone and Internet fraud (CNP), the UK Cards Association group claims the growth in the use of MasterCard SecureCode and Verified by Visa by both online retailers and cardholders has helped aid the decline.

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