Jump in CNP fraud since chip and PIN roll out

Jump in CNP fraud since chip and PIN roll out

Card-not-present (CNP) fraud has increased in the UK since the introduction of chip and PIN technology, according to Retail Decisions, a provider of fraud prevention and payment processing services.

Retail Decisions says online card fraud has risen by 22% since the chip and PIN system was rolled out in January.

Carl Clump, chief executive, Retail Decisions, says there is no doubt chip and PIN will reduce card fraud in the card present environment but it is important to monitor what happens in the CNP environment.

"Fraudsters will turn their attention to the Internet, mail order, telephone order and interactive TV as these transactions cannot be PIN validated," says Clump.

A study commissioned by Retail Decisions on the roll out of chip and PIN found that nearly two-thirds of the 1000 people surveyed had used the system to pay for purchases and of these 83% described the experience as positive. But almost a quarter are still struggling to remember their PIN.

The research also found that only 34% of cardholders have received all their replacement chip cards from the service providers, while 16% have not received any replacement cards at all.

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