Online credit card fraud and phishing increase

November 8, 2006

A report released yesterday by APACS revealed that although overall credit card fraud is down by 5 per cent in the first six months of 2006, online banking fraud has soared by a massive 55 per cent.

Figures show that credit card fraud in the six months to June 2006 dropped by over £10 million. The use of chip and pin is credited for this drop in fraud. Chip and pin use became a requirement this year.

With the success of chip and pin, criminals are now shifting their focus to other vulnerable areas which shows in the figures released by APACS. Fraud using the system of "card not present" or CNP has increased. APACs also points out that this type of fraud, although increased, has slowed over the first six months of this year. Figures show that CNP fraud rose to £95.3m, an increase of 5 per cent.

The reason for the rise in CNP fraud is due to the fact that there is no chip and pin requirement and customers are not required to enter their PIN (personal identification number).

The rise in online baking fraud is alarmingly due to the increased use of "phishing" by criminals. This involves emails being sent to unsuspecting victims asking them to "confirm" their account details. This information is then used to empty bank accounts.

Director of corporate communications at APACS, Sandra Quinn, said, "These latest fraud figures show that the industry’s efforts are making their mark. However, each and everyone of us can also help defeat the fraudsters, and protect our cards and online accounts, by keeping our PINs, passwords and personal information safe and secure.”