Online credit card fraud increases

Posted 2008-04-22

The amount of online credit card fraud is greater than first believed, new research has shown.

According to figures from the banking industry, losses through mail, internet and phone, known as card not present losses reached £290.5 million in 2007, a 37 per cent increase on the previous year.

The BBC claims that if failed attempts were also taken into account the number would be closer to £500 million.

Paul Simms, chief executive at the fraud screening solutions company, 3rd Man, told Vnunet.com that the problem is likely to get worse.

"Card not present fraud is a major problem which is not going away and is getting worse as criminals increase their efforts to steal from retailers," he said.

The Association of Payment Clearing Services has revealed that the total loss associated with credit card fraud in the UK was £535 million.

Last year it was found that number of people using internet-based banking had surpassed those using telephone banking.

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