Cardholder not present fraud drops as criminals turn to other scams
The tide is turning in the fight against cardholder not present fraud, which has cost the channel millions over the last few years, with the amount of money lost as a result of that kind of fraud dropping for the first half of this year.
Figures released today from Financial Fraud Action UK show that compared to the levels lost to CNP fraud in 2008 the problem is being pinned back dropping by 8% year on year for the first six months of 2011 to £109.2m.
Back in the first half of 2008 £163.9m was being lost to fraud committed over the phone, internet or via mail order but it has been cut progressively over the last three years.
The fraudsters appear to have headed elsewhere with crime using lost or stolen cards on the rise and fraudulent cheques also being a popular way of scamming businesses.
DCI Paul Barnard, head of the dedicated cheque and plastic crime unit, the special police squad which is sponsored by the banking industry and has an ongoing brief to help stamp out organised payment fraud, said that although losses to fraud were dropping the need for vigilance remained.
"Losses are appreciably lower than they were a few years ago and everyone involved in tackling fraud has reason to be encouraged by this - and that includes bank customers who, as their own front-line of defence, have certainly played their part too," he said.
"However, there has been an increase in old fashioned scams - criminals using distraction techniques and social engineering methods to get hold of people's cards or phone banking details. We are urging everyone to be on their guard," he added.