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January 31, 2012

UK card fraud in decline

Card fraud in the UK is declining, according to the UK Cards Associations 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).

By Verdict Staff

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).

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.

Melanie 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.

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