New research has named the seaside town of
Brighton as the card fraud capital of the UK in 2010 but incidences
of fraud continue to decline.
According to life assistance company CPP’s
annual Card Fraud Index, over 13m people are said to have
now fallen victim to card fraud in the UK, a third of which (33%)
do not become aware of such an occurrence until they are informed
by their bank or their card is refused at an ATM or POS.
Go deeper with GlobalData
Victims of card fraud reported the average
amount stolen was £417 ($667) with one in four reporting
losses of more than £2,000.
“In 2010 we saw a three per cent decrease in
card fraud incidents in the UK compared to the previous year,” said
Sarah Blaney, card fraud expert at CPP.
“This in itself is good news and shows how
progress is being made to reduce the number of victims. In
particular, online fraud has decreased, which could be a result of
industry initiatives such as Verified by Visa and MasterCard
SecureCode.
“We are also continuing to see consumers
protecting themselves with preventative measures such as Card
Protection policies that immediately cancels lost and stolen cards.
However, with card fraud costing the UK £440 million a year,
consumers still need to remain vigilant and not let their guard
down. We want to see the continued decrease in card fraud and hope
that consumers will take responsibility alongside industry
initiatives.”
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By GlobalDataThe study claims the top five card fraud
hotspots in the UK are Brighton with 38% of its population affected
by card fraud, London with 34%, Manchester is third with 33%,
Bristol and Leeds are tied in fourth standing at 32% and Edinburgh
comes in at 31%.
2010 saw a 3% reduction in the number of card
fraud incidences when compared to figures from 2009. However, the
study warns that UK consumers are not doing enough to protect
themselves against the on-going threat. 18% do not check ATMs to
see whether they have been tampered with, 17% do not shield their
PIN numbers at cash points and 16% admit to letting their card out
of sight in shops and restaurants. People usually also take an
average of 8 hours to report their cards as lost or stolen, which,
the report said, “gives ample time for fraudulent use”.
The Card Fraud Index said most card
fraud victims (20%) have the magnetic stripe on their card cloned
at an ATM or via a chip and PIN machine – a 3% increase on
2009.
Worst cities for card fraud:
City Percentage of people affected by
card fraud at least once
Key (1) = position in fraud
rankings
|
City |
2010 |
2009 |
2008 |
2007 |
|
Brighton |
38 (1) |
23 (10) |
27 (5) |
12 |
|
London |
34 (2) |
35(2) |
38 (1) |
28 (1) |
|
Manchester |
33 (3) |
21 |
29 (4) |
22 (4) |
|
Leeds |
32 (4) |
27 (5) |
19 |
19 (8) |
|
Bristol |
32 (4) |
20 |
18 |
22 (3) |
|
Edinburgh |
31 (5) |
24 (9) |
23 (9) |
18 (10) |
|
Southampton |
29 (6) |
28 (4) |
24 (7) |
14 |
|
Norwich |
28 (7) |
30 (3) |
25 (6) |
19 (9) |
|
Birmingham |
27 (8) |
23 |
23 (8) |
25 (2) |
|
Liverpool |
25 (9) |
15 |
19 |
14 |
|
Plymouth |
24 (10) |
24 (7) |
22 (10) |
16 |
|
Glasgow |
24 (10) |
24 (8) |
31 (3) |
20 (6) |
|
Cardiff |
20 |
37 (1) |
34 (2) |
20 (5) |
|
Newcastle |
20 |
25 (6) |
16 |
9 |
|
Nottingham |
20 |
23 (10) |
12 |
19 (7) |
|
Sheffield |
18 |
17 |
14 |
18 |
