Cardholder not present fraud figures rise again

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Cardholder not present fraud figures rise again

Simon Quicke

Cardholder not present (CNP) fraud has continued to rise last year with the amount now scammed by fraudsters topping £328m.

According to figures from the APACS, the UK payments association, there was a 13% increased in CNP fraud between 2007 and 08.

That contributed more than half of the total card fraud losses last year in the UK of £609.9m.

"Card-not-present fraud losses have increased by 13 per cent over the last year and account for 54 per cent of all card fraud losses," stated APACS.

"Tackling this fraud is a priority and the industry continues to encourage cardholder and retailer take-up of MasterCard SecureCode and Verified by Visa - secure online payment systems that help prevent online shopping fraud.,"it added.

"From 2001 to 2008 card-not-present fraud losses rose by 243 per cent; over the same time period, the total value of online shopping transactions alone increased by 524 per cent (up from £6.6 billion in 2001 to £41.2 billion in 2008)," the association pointed out.

APACS said that it was working with the police to try and reduce the amount of fraud committed in the UK and changes in the banking system, with a Faster Payment Service, had already had a positive impact on stemming losses.

"The Metropolitan Police Service Police Central e-Crime Unit, as the lead force for e-crime, will help tackle these losses by coordinating the work of police forces, the National Policing Improvement Agency and other agencies to: improve standards of training; develop national proceedings; and improve the police response to e-crime across the country," the payments group stated.

CNP fraud has been a bugbear of the channel for years with those impacted by the crime continually calling on more support from the government, police and the banking system.

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