Figures released today show that fraud related to
card-not-present (CNP) transactions – i.e. internet, phone and mail
order transactions – resulted in losses of £70.2 million in the
first six months of 2004, rising to £90.6 million in the first half
of this year.
In contrast, credit card fraud as a whole fell from £252.6
million to £219.4 million over the same periods.
APACS (formerly an acronym for the Association for Payment
Clearing Services and now just known as APACS) believes that the
conflicting figures are down to the success of the chip and PIN
roll out, which has forced fraudsters to move online.
At the same time, online banking fraud losses have also
increased.
These totalled £14.5 million in the six months to the end of
June 2005 compared with £4 million in the same time period last
year. Both online card fraud losses and online banking losses have
grown hand-in-hand with the number of internet users and huge
volumes of online card transactions and banking transactions.
But in the wake of research commissioned by the Association,
APACS is concerned that many people are not even aware of some of
the basic online pitfalls.
The research shows that one in eight online shoppers have failed
to log out when shopping online, leaving their financial details
available to others; one quarter of online shoppers do not check
whether a website is safe and secure; while almost half of women
and half of 16–24 year-olds in the UK do not know what phishing
is.
APACS has launched a fraud awareness campaign to highlight the
risks and to make consumers aware of the simple steps they can take
to protect their cards and online bank accounts.
It warns that the majority of internet card fraud involves a
criminal obtaining genuine card details in the real world then
using them to shop online. Consumers can minimise the chances of
becoming a victim by simply keeping cards and card details as
secure as possible and not letting their cards out of their
sight.
APACS recommends that, whenever they are given the option,
consumers should sign up to the Verified by Visa and MasterCard
SecureCode schemes, which enable cardholders to authenticate
themselves when shopping online. This in turn makes it more
difficult for a fraudster to use their card details, albeit only a
few card issuers currently participate.
APACS has also launched ‘10 Top Tips’ to help customers protect
themselves online.
Sandra Quinn, director of corporate communications for APACS,
said: “These latest online fraud losses are comparatively low
considering the huge number of transactions now being carried out
online and it is clear that fraudsters are having more success
targeting cards than online bank accounts – so our campaign is
focused on cardholders.”
“Probably nearly everyone with access to the internet will buy
something online this Christmas and there is absolutely no reason
why they shouldn’t do this in complete confidence providing they
follow some very simple rules – all of which are spelt out in our
top ten tips,” she added. “However, if you are going to do one
thing this Christmas to help protect your cards from the fraudster
even more then sign up to Verified by Visa or MasterCard SecureCode
wherever possible when you come across them on an online site.”
10 Top Tips
- Don’t hand over valuable card or bank account information to
the fraudster – Fraudsters target cards and card details so try not
to let them out of your sight. Don’t give away your PINs or bank
passwords to cold callers or in response to unsolicited
emails often known as phishing scams.
- Only ever use a protected computer - Make sure your computer
has up-to-date anti-virus software and a firewall installed. Visit
Get Safe
Online for more information.
- Keep your cards and card details safe in the real world – Most
internet fraud happens because card details are stolen in the real
world and used online, so keep them safe at all times.
- Sign up whenever you are given the option whilst shopping
online to Verified by
Visa or MasterCard
SecureCode Increasingly when you go to pay online with
your card you will be given the option of signing up to these
schemes that involve you using a password. By signing up you will
prevent a fraudster using your card details on participating sites
as they will not know your password.
- Only shop at secure websites – Ensure that the security icon –
the locked padlock or unbroken key symbol – is showing in the
bottom of your browser window before sending your card details. The
beginning of the retailer’s internet address will change from
“http” to “https” when a purchase is made using a secure
connection.
- Make sure your browser is set to the highest level of security
notification and monitoring – The safety options are not always
activated by default when you install your computer. The most
popular browsers include Microsoft Internet Explorer, Firefox and
Opera. Check that you’re using a recent version – you can usually
download the latest version from these browsers’ websites.
- Always check your statements – Check statements as soon as you
receive them. If you find a transaction on your statement that you
did not make, contact your bank or card company immediately. Tear
up, or preferably shred, any documents that contain information
relating to your financial affairs.
- Consider using an internet-only card – If you regularly make
transactions over the internet consider opening a separate credit
card account specifically for these transactions. This would enable
you to monitor transactions at a glance and credit cards offer
additional consumer protection should anything go wrong.
- Print out your order – When shopping online make sure you get a
hard copy of both your order form and the retailer’s terms and
conditions. When buying from overseas remember that it may be
difficult to seek redress if problems arise, but having all the
relevant information will help your bank or building society take
up the case if you have any problems.
- Visit the websites Get
Safe Online, Card
Watch and Bank
Safe Online for more information about how to shop and
bank safely online.
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