Card fraud losses on the rise again

APACS has released figures on card fraud for the first six months of 2008 that show online and overseas fraud is on the rise.

The figures revealed that total card fraud losses increased by 14 per cent to £302 million in the six months to June 2008 compared with the first half of 2007. This was still less than the last figures released earlier this year for 2007, which showed card losses grew 25 per cent for the last full year.

But, where last year marked the second consecutive year card fraud had dropped overall, the first six months of 2008 were affected by a massive 185 per cent rise in online banking fraud losses, totalling £24.1 million.

Sandra Quinn, APACS director of communications, said: “Criminals continue to target those areas where we do not currently have the security benefits of chip and PIN, causing increases in fraud abroad and phone, internet and mail order shopping fraud.”

Losses from phone, internet and mail order shopping fraud have continued to increase year-on-year – albeit at a decreasing rate – and now stand at £12 million or 54 per cent of all card fraud losses. And the number of recorded phishing attacks continues to increase, with more than 20,000 fraudulent phishing websites set up in the first half of 2008 – an increase of more than 180 per cent from the same period last year.

The trade body said that chip and PIN payment authorisation had made it more difficult for fraudsters to commit card fraud in the UK, with losses at UK retailers down by 35 per cent since 2005 (£73 million during January to June 2005 compared with £47 million during January to June 2008).

The latest figures also reveal that fraud on lost and stolen cards (£27 million) has fallen by 38 per cent in the past three years to reach its lowest level for 10 years.

The latest figures revealed overseas fraud, in countries that haven’t yet upgraded to chip and PIN, had caused a 190 per cent increase in losses abroad over the last three years, which now total £121 million, making up to 40 per cent of all UK card losses for the six months up to June 2008.

But APACS said this type of fraud would become more difficult to commit when the European banking industry meets its target to complete its chip card rollout by 2010.

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