VISITOR REGISTRATION
Card fraud hits the bottom line for financial institutions within the payment transaction process - credit card companies, payment service providers, merchants, issuing and acquiring banks.
- Card fraud hits the card holder through the personal cost in time, inconvenience, frustration and distress.
- Card-Not-Present (CNP) fraud is the largest type of card fraud globally
- Card-Not-present (CNP) liability and risk lies with the merchant
- There is £609.9m of card fraud losses in UK alone in 2008. This is up 43% in two years. Link.
- 75% of all offences now involve Card Not Present (CNP) transactions. For example, telephone or mail order shopping where chip & pin technology currently offers no protection for online fraud.
- Card fraud is estimated to affect one in three cardholders in the UK in 2009.
Fraud loss figures released 19 March 2009 by APACS, the UK payments association, show that card fraud losses totalled £609.9m in 2008. The two main areas of fraud were on transactions not protected by chip and PIN: specifically internet, phone and mail order fraud; and fraud abroad.
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(07/08) |
| Phone, internet and mail order fraud (Card-not-present fraud)
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| Counterfeit (skimmed/cloned) fraud
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| Card ID theft
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| Mail non-receipt-
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Card-not-present fraud losses have increased by 13 per cent over the last year and account for 54 per cent of all card fraud losses. The increase in fraud through online and phone transactions should be seen alongside growing use of these shopping channels, as well as increasing numbers of businesses accepting cards remotely. From 2001 to 2008 card-not-present fraud losses rose by 243 per cent; over the same time period, the total value of online shopping transactions alone increased by 524 per cent (up from £6.6 billion in 2001 to £41.2 billion in 2008).
Counterfeit fraud losses increased by 18 per cent in 2008. The vast majority of this fraud is due to criminals stealing card details in the UK to make counterfeit magnetic stripe cards for use in countries yet to upgrade to chip and PIN
Card ID theft losses have increased by 39 per cent to £47.4 million. This is due to a rise in account takeover, whereby criminals take over the running of another person’s credit or debit card. This fraud typically involves a criminal obtaining a genuine card and a genuine PIN, and has contributed to the fraud increases seen at UK shops and cash machines.
Online banking fraud losses totalled £52.5m in 2008 – a 132 per cent increase from 2007 losses.