Card fraud in the UK is declining, according
to the UK Cards Association’s most recent annual report.
The total annual losses on UK-issued cards
fell by 17% between 2009 and 2010 – the last full year for which
figures are available – to £365.4m ($576m).
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This was the lowest annual loss total since
2000. In the year to end-December 2009, card fraud losses had
declined by 28% to £400m ($630m).
There were a number of strategies used in 2011
by the UK card industry to prevent fraud, including:
- Wider rollout and use of online fraud prevention solutions such
as Verified by Visa, MasterCard SecureCode, cardholder address
verification (AVS) and card security codes (CSC) - encouraging merchants to make use of card-not-present prevent
tools, such as intelligent fraud detection software and - working with identity Fraud communications & Awareness
Group of industry bodies to promote best practice guidelines to
consumers and businesses on how to avoid becoming a victim of ID
theft
The report also suggests that fraud losses on
UK cards continued to fall thanks to the banking industry’s
on-going investment in fraud prevention initiatives such as the
Dedicated Cheque and Plastic Crime Unit (DCPCU);
In 2010 alone, the DCPCU generated savings of
more than £28m , arresting 53 suspects and disrupting 22 organised
criminal gangs.
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By GlobalDataMelanie Johnson, chair of The UK Cards
Association said:
“Our 2012 Annual Report shows how we
have made great strides in keeping cards safer from fraud and
making changes that give customers more choice and control. We have
also delivered some very tangible benefits: giving customers peace
of mind that the highest debt on their credit card will always be
paid off first; introducing a new annual credit card statement
which every cardholder will receive from now on; and improving the
transparency of charges when buying, or spending in, foreign
currency.”
The reports also states that by the end of
2011, 20m cards had been upgraded to contactless technology and
73,000 outlets had contactless readers installed.
