25 July 2007
London is at the centre of a new wave of credit card fraud, a report has found.
Leading just ahead of Manchester, the latest rise in credit card fraud has been centred on cardholder-not-present (CNP) fraud.
CNP fraud involves a person stealing somebody's credit card details and using it either to shop online or over the phone, rather than simply stealing and using a credit card in a shop.
Although this can be taken as an indication that chip and PIN has been a success, it is nevertheless a disturbing trend, costing 212.6 million annually.
"While there has been a reduction in counterfeit and lost and stolen cards, there has been an increase in CNP fraud and a growth in cross border risks," said Abbey Financial Crime Director Neil Wilson.
"Fraudsters have modified their behaviour to ensure economic returns are maintained in the light of growing technological complexity and by following the path of least resistance."
While shopping online will always be accompanied by a minor risk of fraud, banking industry association APACS have suggested that retailers introduce a multi-layered approach to credit card security, to weed out potentially fraudulent transactions.
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.