UK card crime goes up once again

Research led by The UK Cards Association shows that frauds with UK cards have increased by 9% in the beginning 2012. According to them, fraudsters have learned how to bypass the latest security enhancements of the cards, and can easily target vulnerable consumers.

The figures show that the total damage inflicted by fraudsters in the beginning of 2012 was £185m, a 9% increase when compared to the £169.8m which were registered in the beginning of 2011. Currently, the biggest losses from credit and debit card frauds was registered in the beginning of 2008 – £304.2m.

The proportion of card fraud losses and the amount of money spent via credit and debit cards has reduced to 0.063%. In the beginning of 2011, the UK Card Association registered a proportion of 0.069%.

Online banking frauds are also becoming a major problem as the losses registered from there have risen to £21.6m. According to the association’s research, the main reason for this is the large amount of fraudsters who set up phishing websites in order to gain access to the banking data of consumers.

Fraudsters use many simpler methods to gain access to the banking information of consumers. For example, they often distract clients of shops and cash machines and steal their credit or debit cards.

Elderly users of cards face another problem. Many of them are contacted by phone from someone who claims to be an employee at their bank. Afterwards, they tell them that their card is reissued and they need to state their PIN in order to get their new card mailed to them.

The amount of losses inflicted by cheque fraud has risen to £17.9m. This type of fraud isn’t so popular, because it is easily detected by bank employees and most attempts are stopped before the fraudsters receive any money.