October 8, 2009
-
News: UK Credit Card Fraud Down
Efforts by credit card and technology companies to develop new systems in the fight against theft identity and card fraud are paying off for the United Kingdom. In a report released by the Financial Fraud Action UK, credit card fraud in the country dropped significantly by 23 percent during the first half of 2009. During the same period last year, the UK's credit card fraud hit record breaking numbers. UK citizens traveling abroad were also winners. Card fraud for these travelers dropped dramatically by 45 percent. On the down side, individuals carrying cards issued in other countries are paying 36 percent more in the UK.
The reduction in credit card fraud in the UK is being attributed to several reasons. First experts speculate thieves have been concentrating more on internet activities. It is also believed that measures taken by banks and merchants to beef up security by implementing more sophisticated fraud detection mechanisms is paying off. Some statistics indicate that the newest chip and pin technology has contributed to an approximate 25 percent reduction in credit card fraud while card fraud increased by 36 percent in other countries. The chip and pin system has only been implemented in a limited number of countries, but the idea is being explored. Most likely, criminals have increased activities in countries that have not yet implemented the new technology. Good news for the UK but not those countries wagging their tails behind.
Credit card loss due to lost or stolen cards also fell in the UK. For the first six months of the year losses fell by a record breaking 6 percent. UK online, mail order, and telephone fraud also decreased which experts attribute to Visa and MasterCard's new verified programs that require the consumer to enter a special code prior to receiving authorization. Although fraud is down in the UK, authorities say the country must not become complacent. A continued focus most remain visible and maintaining a proactive path in the fight against fraud.