Apacs issues guidance as 'card not present' fraud leaps
10 November 2003 | 5851 views | 0
With the UK banking industry investing heavily to deal with counterfeit card fraud through the introduction of chip and PIN at the retail point-of-sale, umbrella payments body Apacs has turned its attention to the growing threat from phone, fax, Internet and mail order fraud which has jumped by a third over the last two years to £109.6 million.
More than eight out of ten of British shoppers who use debit or credit cards will visit the 'new High Street' for Christmas shopping this year – buying goods over the Internet, by mail order, by phone or by fax. But they risk falling prey to a £300,000-a-day fraud problem because they do not follow simple steps to protect themselves, warns Apacs.
At £109.6 million, annual losses from fraud on 'card-not-present' purchases are now second only to card cloning which cost the industry £128.8 million in the year to end-June 2003. As the banking industry moves to clamp down on counterfeit cards through chip and PIN, there is growing concern that criminal gangs will concentrate more resources on CNP fraud.
In a new report, released by Apacs' Card Watch initiative, cardholders are urged to shred or burn their bank or credit statements when they are finished with them. Apacs is also publishing new training and education materials this week for retailers outlining key fraud prevention tools and advice.
Sandra Quinn, Apacs spokesperson says: "Chip and PIN will have a significant impact on counterfeit, lost or stolen and mail non-receipt fraud. Card users can help to make a similar impact on 'card-not-present' fraud by following the simple steps we are outlining today. Retailers can significantly cut their risks by following the steps outlined in our educational and training materials."