Emma Lunn, Wednesday March 19, 2008
Credit and debit card fraud losses have soared by more than a quarter over the past year. Find out what's behind the surprise surge - and what you can do to safeguard your cash
Card fraud losses are up by 25% due to a sharp increase in fraud committed overseas in countries not yet upgraded to chip and pin. Figures from UK payments body APACS show a £90.5m rise in the number of frauds committed overseas in the past year.
Following the introduction of Chip and Pin technology in the UK, criminals are using stolen card details in other countries where a signature, rather than a pin number, is required. Chip and Pin has helped clamp down on fraud at home: APACS figures show that over the past three years losses on face-to-face card transactions in the UK have fallen by two-thirds - from £218.8m in 2004 to £73.0m last year.
The 2007 figures also show that fraud on both lost and stolen cards (£56.2m) and stolen mail fraud (£10.2m) are at their lowest levels for 10 years.
As a result, criminals are concentrating their efforts overseas - fraudsters steal card details in the UK and make counterfeit magnetic stripe cards for use in countries yet to upgrade to chip and pin. Frauds committed overseas now accounts for more than one third (39%) of total UK card fraud losses.
APACS spokesperson Sandra Quinn insists that banking authorities are winning the battle against fraudsters. "Although card fraud levels have now begun to go up again due to fraud abroad and card-not-present fraud losses, chip and pin has proven to be an undoubted success in reducing card fraud on the UK high street," she says.
"And, as more countries follow our lead and upgrade to chip and pin, the opportunities for criminals to use our stolen magnetic stripe details overseas will decrease."
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How to keep your cards safe
There are a number of steps you can take to guard against all types of card fraud, both in
this country or abroad.
Firstly, keep your personal details secret. This means that you should never tell anyone else your pin numbers or passwords. Similarly, you shouldn't write any private financial information down.
Next, be vigilant. Don't let your card out of your sight if at all possible. This means not leaving it behind the bar to pay for a tab or letting restaurant staff take it away from your table to swipe it. When you are entering your pin number in a shop you should always use your spare hand to shield the keypad from prying eyes or hidden cameras.
Be careful at cashpoints too - shield the keypad from people queuing along side or behind you, don't accept help from anyone if your card appears to be stuck and don't use a cash point if it looks like it has been tampered with.
If you're shopping online try to only use secure sites. Look out for the locked padlock or "https:" in the browser window. If you use MasterCard or Visa you can register for their online protection schemes, MasterCard SecureCode and Verified by Visa. Once you have registered, you will have to enter an individual password as well as the normal card details in order to complete any online transactions.
Finally keep an eye on your bank statements and report any fraudulent transactions to your bank straight away.
