Fraudulent card-not-present transactions in areas including internet shopping fell by 3% in 2011, new figures show. Factors behind the fall include retailers' moves to introduce safe online shopping measures.
The latest figures from Financial Fraud Action UK, out this week, showed that fraudulent use of bank cards in telephone, internet and mail order transactions where the card is not present fell to £220.9m in 2011, 3% down on the previous year’s £226.9m. Figures from the last five years showed that losses of this type peaked in 2008, when card-not-present fraud hit £328.4m.
Overall, fraud losses on UK cards fell by 7% to £341.0m in 2011 from £365.4m in 2010. Over the last three years such losses have fallen by nearly 45% and are now at their lowest level since 2000.
Factors in the downward trend include the move among both retailers and consumers to sign up to initiatives such as MasterCard SecureCode and Verified by Visa, Financial Fraud Action UK said.
Financial Fraud Action UK represents the financial services’ industry’s work to combat card fraud in the UK and in partnership with the UK Cards Association and the Cheque and Credit Clearing Company.
Melanie Johnson, chair of the UK Cards Association, said: “Driving down fraud and keeping cards safe continues to be a priority for the industry. This is the third year card fraud losses have fallen, clear proof that our endeavours to fight fraud are packing a punch.”
But while card-not-present fraud has been falling both telephone banking and cheque fraud losses rose, by 32% to £16.7m, and 17% to £34.3m respectively.