Fraud facts

Card fraud costs the industry millions of pounds every year. In order to protect your business it is vital that you and your staff are aware of the procedures which should be followed each and every time you accept a plastic card transaction.

We've also put together a set of hints and tips which will help you to detect fraud, and specific advice for how to handle Internet Fraud.

Working with you to combat fraud

* For the twelve months to March 2006, total fraud losses were £437.0 million, a decrease of 11% on the same period 2005. Fraud losses on credit cards were £197.6 million, an 11% decrease on the twelve months to March 2005. Over the same period debit card fraud also decreased by 15% to £196.5 million of which Maestro / Visa Debit losses were £182.1 million (down 15%) and Solo / Visa Electron losses were £14.5 million (down 19%).

Whilst fraud losses continue to decrease by a notable percentage across the above mentioned card types, these negative annual growth rates have slowed this month as a result of continuing increases in losses at UK ATM predominantly on counterfeit cards.

The table below illustrates plastic card fraud losses split by fraud type. It is based on UK-issued cards in millions (£millions).

Fraud Type 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Card-not-present 6.5 10.0 13.6 29.3 72.9 95.7 110.1 122.1 150.8 183.2
Counterfeit 13.3 20.3 26.8 50.3 107.1 160.4 148.5 110.6 129.7 96.8
Lost/stolen 60.0 66.2 65.8 79.7 101.9 114.0 108.3 112.4 114.5 89.0
Mail non-receipt 10.0 12.5 12.0 14.6 17.7 26.8 37.1 45.1 72.9 40.0
Card ID Theft 7.2 13.1 16.8 14.4 17.4 14.6 20.6 30.2 36.9 30.5
Total 97.1 122.0 135.0 188.4 317.0 411.5 424.6 420.4 504.8 439.4

* Figures obtained from the Association of Payment and Clearing Services (APACS) released March 2006.

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