Card fraud drops but internet still problematic

Tuesday, November 8, 2005

Plastic card fraud was significantly reduced in the first six months of 2005 compared with the same period of a year earlier, although there were worrying signs about card-not-present (CNP) sales.

The Association of Payment Clearing Services (APACS) has released figures showing that whilst plastic card fraud losses were down 13 per cent overall to £219.4 million, CNP fraud rose by a considerable £20.4 million, up 29 per cent to £90.6 million.

CNP transactions involve internet, mail order and phone payments, with the internet part accounting for £58 million of the CNP total, a rise of five per cent from the first half of 2004.

"These latest online fraud losses are comparatively low considering the huge number of transactions now being carried out online and it is clear that fraudsters are having more success targeting cards than online bank accounts," said Sandra Quinn, director of corporate communications for APACS.

"Probably nearly everyone with access to the internet will buy something online this Christmas and there is absolutely no reason why they shouldn't do this in complete confidence providing they follow some very simple rules."

It was revealed last month through Royal Mail commissioned research that spending online in November and December this year is expected to reach £5 billion, a £1.5 billion rise from the same time last year.