More of us are falling victim to online banking fraud, with new figures showing a huge increase within the last 12 months.
Apacs, the UK payments association, says there was a 44 per cent rise in cases of online fraud between 2005 and 2006.
The organisation does reveal that credit card fraud has fallen by 47 per cent in the same period but is concerned that fraud over the net has grown from £23.2 million in 2005 to £33.5 million in 2006.
"Chip and pin has had a hugely positive effect on fraud losses over the counter in UK shops and stores, but we are seeing more fraud on transactions that do not use chip and pin, such as over the internet and phone, by mail order and abroad in countries that have not yet fully upgraded to chip and pin," commented Sandra Quinn, director of communications at Apacs.
Card and banking fraudsters have developed to keep up with the new security initiatives that are being introduced.
Although chip and pin has had a huge impact on protecting card holders, fraudsters now use technology that copies information from the card's magnetic strip and create a new card which can be used in countries that do not have chip and pin.
People are being warned to be extremely careful with their cards by ensuring that they do not use an ATM which they think may have been tampered with. The message is: "If in doubt, keep it out". SOURCE: www.nationsfinance.co.uk/
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Comments
#1 Only signatures personalised with ID stickers will combat fraud
The truth is that Chip and PIN system is a fraud diverting rather than fraud combating system because
a. It has not replaced use of signature system on delivery notes and hence there is increase in mail order or card not present fraud and
b. It has not replaced use of signatures on cheques, bankers' drafts, agreements, receipts, money withdrawal notes etc. and hence there is increase in identity fraud.