Card and Online Banking Fraud Declines as Phone and Cheque Scams Rise
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October 6, 2011 TheFreshOutlook  |
Number of credit card fraud cases decrease but cheque and phone banking fraud rises in UK over past 12 months.
The UK Card Association released figures yesterday showing a decline in credit card and online banking fraud, but worryingly cases of phone banking and cheque fraud have increased.
Total fraud losses on UK cards are the lowest in 11 years after falling by nine per cent and online banking fraud has fallen by 32% compared to figures obtained during January and June last year.
However, phone banking fraud losses has increased by 48% and cheque fraud losses have increased by 17%.
The head of the Dedicated Cheque and Plastic Crime Unit (DCPCU), DCI Paul Bernard, said: “Losses are appreciably lower than they were a few years ago and everyone involved in tackling fraud has reason to be encouraged by this – and that includes bank customers who, as their own front-line of defence, have certainly played their part too. However, there has been an increase in old fashioned scams – criminals using distraction techniques and social engineering methods to get hold of people’s cards or phone banking details.”
A spokesperson from Financial Fraud Action UK explained to The Fresh Outlook why phone banking statistics have increased so dramatically over the last year: “It’s a combination of more people using phone banking and more fraudsters targeting it.
“It’s very, very easy to protect yourself against phone banking fraud. For example, banks will never ask you for your pin number over the phone, if someone does hang up the phone and get in touch with your bank immediately.”
The UK Cards Association claims the lower figures of card and online banking fraud are a result of industry initiatives that have been put in place to reduce online banking and card crime. These measures include: the increasing use of fraud detection software, the rollout of updated chip cards, the increasing roll-out of chip and PIN technology abroad and increased customer awareness of computer security combined with banks’ use of fraud detection software.
For more information on how to protect yourself from banking fraud visit www.financial fraudaction.org.uk
By Ben Perks
[Image courtesy of Ben Perks]
