23 August 2017
Visit http://response.ncr.com

Remote banking - and fraud - show explosive growth

29 August 2001  |  3517 views  |  0 APACS Card

Remote banking by telephone, PC, Internet or digital TV is seeing explosive growth with over a quarter of adults now managing their accounts in this way, according to figures released by UK payment body Apacs.

Over 12 million people now use remote banking services to manage their current accounts, compared to 8.5 million in 1999. It is also growing rapidly amongst businesses, with one in five of all businesses now using remote banking.

Within ten years 34 million adults (68% of the 16 and over population) are expected to be accessing their current accounts remotely through their phone, computer, TV, mobile phone or other devices, forecasts Apacs.

Apacs also notes the continued strong growth of plastic card payments - now the most popular payment method in the UK after cash - and a sharp rise in card crime. Fraud losses on UK-issued cards in 2000 rose to £292.6 million, reports Apacs, up by 55% on 1999. The majority of this increase was attributable to the use of counterfeit cards (+104%) and to fraudulent remote transactions (mail order, telesales and Internet purchases) through possession or generation of card details where either no card is held or is fabricated by the fraudster (+94%).

Losses resulting from fraudulent remote transactions using only the card details increased sharply from £29.3 million in 1999 to £56.8 million in 2000. To fight this type of fraud, the UK banking industry has made available, from April 2001, an automated address and card verification system that requires purchasers to give additional details from the actual card, thereby giving a greater certainty that the caller is in possession of the card at the time of the transaction.

While the non-cash payment market continues to grow, the prospects for the electronic purse in the UK are subject to considerable uncertainty, suggests Apacs.

On the one hand, the potential market for a coin substitute is huge; it is estimated that there were over 9 billion coin payments below £1 in value last year. On the other hand, the business case for banks to establish electronic purse schemes is currently not compelling, believes Apacs.

Opportunities to introduce the purse into the UK market are most likely to arise from partnerships between banks and smart card issuers such as local authorities and transport companies, believes Apacs.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Consignia launches online bill payment for UK consumers

Consignia launches online bill payment for UK consumers

08 August 2001  |  3324 views  |  0 comments
European online banking set to boom

European online banking set to boom

03 August 2001  |  3998 views  |  0 comments
HSBC and Yahoo! launch person-to-person payments platform

HSBC and Yahoo! launch person-to-person payments platform

30 July 2001  |  3873 views  |  0 comments
Britain to become cashless society within ten years

Britain to become cashless society within ten years

12 July 2001  |  5826 views  |  0 comments
Abbey National and BTinternet open co-branded 24/7 Web portal

Abbey National and BTinternet open co-branded 24/7 Web portal

06 July 2001  |  2959 views  |  0 comments
More Europeans manage their finances online

More Europeans manage their finances online

04 July 2001  |  3865 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.worldpaymentsreport.comvisit www.dorsum.euvisit www.vasco.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
12691 views comments | 27 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
11304 views comments | 22 tweets | 34 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
10429 views comments | 21 tweets | 34 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
10420 views comments | 10 tweets | 8 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
10408 views 0 | 6 tweets | 1 linkedin