Knowledge Centre
8th October 2009
The cost of credit and debit card fraud has fallen by almost a quarter in 2009, according to an industry group.
And figures for the first six months of the year, released by Financial Fraud Action UK, also point to the first fall in card-not-present losses.
In total, card fraud cost the industry £232.8 million in the year to June - down from £304.2 million over the same period in 2008, though still higher than the 2006 figure of £209.0 million.
Cheque fraud losses also fell by around a quarter, though online banking fraud losses leapt up by 55%, to £39 million.
The group admitted that the dip in card fraud may be a result of criminals targeting less secure foreign-issued cards, especially those without chip and PIN protection.
Earlier this week the passwords to thousands of accounts with major email providers were made available online following a phishing scam - where hackers obtain sensitive information by impersonating trustworthy bodies.
Business groups have warned that more needs to be done to protect small firms so they feel confidence in doing business online.
The national chairman of the Federation of Small Businesses (FSB), John Wright, highlighted a report into fraud published by the group earlier this year. It found that 37% of small firms had received phishing emails in the previous 12 months, while online fraud and crime costs each small firm an average of £768 during the period.
Wright told More Than Business News that businesses are still at risk, and that structures need to put in place to support them.
"The FSB believes there needs to be more effective communication about phishing threats through the National Fraud Reporting Centre, and making sure it is a well-advertised and accessible method of reporting fraud and e-crime," he added.
IMAGE Chris Young/PA Wire
Card fraud falls, but 'businesses still at risk'
And figures for the first six months of the year, released by Financial Fraud Action UK, also point to the first fall in card-not-present losses.
In total, card fraud cost the industry £232.8 million in the year to June - down from £304.2 million over the same period in 2008, though still higher than the 2006 figure of £209.0 million.
Cheque fraud losses also fell by around a quarter, though online banking fraud losses leapt up by 55%, to £39 million.
The group admitted that the dip in card fraud may be a result of criminals targeting less secure foreign-issued cards, especially those without chip and PIN protection.
Earlier this week the passwords to thousands of accounts with major email providers were made available online following a phishing scam - where hackers obtain sensitive information by impersonating trustworthy bodies.
Business groups have warned that more needs to be done to protect small firms so they feel confidence in doing business online.
The national chairman of the Federation of Small Businesses (FSB), John Wright, highlighted a report into fraud published by the group earlier this year. It found that 37% of small firms had received phishing emails in the previous 12 months, while online fraud and crime costs each small firm an average of £768 during the period.
Wright told More Than Business News that businesses are still at risk, and that structures need to put in place to support them.
"The FSB believes there needs to be more effective communication about phishing threats through the National Fraud Reporting Centre, and making sure it is a well-advertised and accessible method of reporting fraud and e-crime," he added.
IMAGE Chris Young/PA Wire
Tags: Crime
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