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BizReport : Ecommerce archives : October 11, 2010

Online banking fraud in U.K. down 36%

Tougher security measures and new 'chip and pin' cards are driving down banking and credit card fraud both on- and offline, new figures out of the U.K. have revealed.

by Helen Leggatt

The U.K. Cards Association has recently published figures that show fantastic progress in the fight against online card fraud. They show losses from fraud on British credit cards fell 20% to $298 million in the first half of 2010, the lowest in a decade and a huge decrease from 2008's high of $972 million.

These figures are a testament to the importance that the U.K.'s card companies place on driving down card fraud losses and reducing inconvenience to customers.

Online banking witnessed the biggest success - a 36% drop in losses in the last six months to $40 million.

However, the Association was somewhat cautious in face of such encouraging figures.

"Over the past five years, fraud losses in this area have been fairly volatile over a six-month period, so this decrease is not necessarily the start of an ongoing trend," said a recent announcement.

"Given this, and the fact that fraudsters are still focusing on this type of fraud, the industry will continue to advance its crime prevention initiatives in this area."

The only fly in the ointment was phone banking fraud which rose 9% to $9.5 million.

Tags: fraud, online banking

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