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One step ahead of the card fraudsters

The UK Payments Administration released the latest fraud figures today (doubleclick to enlarge):

FraudQ209 

This shows general card fraud is down 23% to £232.8 million in the first half of 2009 although, of concern, will be the fact that online fraud is increasing at a rapid click (55%) year-on-year.  This rise in cardholder not present activity is probably due to cardholder present fraud declining rapidly thanks to Chip & PIN.

Mind you, even the rise in internet fraud isn't too bad when you think that losses from phone, internet and mail order shopping fraud overall have fallen for the first time ever and now stand at £134 million.

According to the Payments Association, this is because of the increasing use of sophisticated fraud screening detection tools by retailers and banks, as well as the continuing growth in the use of MasterCard SecureCode and Verified by Visa by both online retailers and cardholders.

It all sounds rosy … but for users of such services, it is still proving challenging as card readers and Chip & PIN are still called into question.

Just this week, consumer groups are telling banks that they must not always assume the customer is to blame if a payment is made with a PIN for example.

PINs can be compromised.

All in all, it seems to show that the anti-fraud measures are just about keeping ahead of the fraudsters however … except when it comes to online.

Mind you, with most email accounts compromised this week, it just shows how difficult this battle will be … after all, if Google, Microsoft and company can be phished, who's next?


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About Chris M Skinner

Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, the Finanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. To learn more click here...

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