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By Reno Charlton
Staff Writer, 7 October 2008
THE level of credit card fraud has increased by 14%, as the first half of this year saw UK credit card holders lose a massive £302 million to fraud.
According to officials from the Association of Payment Clearing Services (APACS), the £302 million lost to fraud indicates that the level of credit card fraud has increased by 14% in the first half of 2008 compared to the same period in 2007.
Risk increases abroad and online
Officials from APACS said that around 40% of total credit card fraud took place abroad, with credit card cloning and counterfeiting remaining a major problem and a big part of tackling overseas credit card fraud.
In addition to a rise in the level of credit card fraud, online banking fraud has also seen an increase, and is claimed to be increasing by as much as 185% year on year.
In the past 3 years losses stemming from overseas has increased by close to 200%, and CNP (Card Not Present) fraud accounts for over 50% of credit card fraud.
In the first half of this year alone, over 20,000 fraudulent phishing websites have been set up, putting many more people at risk of becoming victims of credit card or Identity theft fraud.
Credit cards now safer with chip and PIN
The good news is that credit card fraud resulting from the use of stolen or lost credit cards at retailers has actually gone down.
This decrease in card present fraud is largely considered to be the result of chip and PIN technology, which has made it much more difficult for fraudsters to use lost or stolen credit cards in shops.
However, card not present, or CNP, fraud at retailers - (online, over the telephone or even mail order) is still rife, as the card is not physically needed for transactions to be made.
An official from APACS stated: "Criminals continue to target those areas where we do not currently have the security benefits of chip and PIN, causing increases in fraud abroad, over the phone, Internet and mail order shopping".
APACS has also issued a range of advice for cardholders, urging them to be more careful with their credit card details and security information in order to avoid falling victim to this type of crime.
APACS' advice to guard against fraud:
- Don't let your cards or your card details out of your sight when making a transaction.
- Destroy any documents or receipts that contain personal financial information when you have finished with them.
- Do not keep your passwords, login details or PIN numbers written down.
- Do not disclose PINs, login details or passwords in response to unsolicited emails.
- Shield your PIN when making a purchase or withdrawing cash.
- Only divulge card details over the phone when you have made the call or when you are familiar with the company.
- Access internet banking or shopping sites by typing the address into your browser. Never enter your personal details on a website you have accessed via a link from an email.
- Shop at secure websites by checking that the security icon is showing in your browser window (a locked padlock or an unbroken key).
- Always log out after shopping and save the confirmation email as a record of your purchase.
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