'Card Not Present' Fraud Losses now tackled

Posted in 'Identity Theft' by Richard Catlin

01 October 2008

Increasing numbers of UK consumers are being encouraged to sign up to secure online payment systems as banks fight back against the continued increase in online and ‘distance selling’ fraud.

25 million cardholders are now registered on the ‘Verified by Visa’ and ‘MasterCard SecureCode’ programmes – and this number is growing by around 1.5 million every month. The schemes work by applying an extra layer of security - asking for an additional password before an online transaction can be completed - reducing the threat of ‘cloned’ cards being used fraudulently.

Although voluntary until now, many banks are now requesting customers to sign up to the scheme if they wish to use their cards to shop online. Cardholders can join the schemes online on their bank's website, or when making a purchase with a participating retailer.

‘Card Not Present’ Fraud (CNP) continues to increase in the UK, reaching £290.5 million in 2007, up 37% on the previous year. This latest move is an attempt by card providers to try to arrest the trend.

The protection offered when paying by credit card means that you shouldn’t have to bear any loses to fraud yourself. APACS, the UK’s payment association, will also be launching a new campaign shortly, aimed at helping consumers stay protected when shopping online in the run up to Christmas.

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Check for free how vulnerable you are to identity theft here.