CNP Fraud Dips in U.K.
April 23, 2010
For the first time in half a decade, CNP fraud dropped in the U.K., according to a report from payment card issuer, processor and fraud prevention provider Retail Decisions plc. The company reported recently that the value of online, mail order and telephone order fraud declined by an estimated 15 percent to £ 278 million ($428 million) in 2009, compared with £ 328 million ($505 million) in 2008. Overall, CNP fraud now accounts for more than 50 percent of payment card fraud losses in the U.K, up from 10 percent in 1998 when ecommerce was in its infancy. The company expects the decline in fraud to continue in 2010, but to grow again in 2011 as the bad guys adapt to anti-fraud measures currently being adopted by merchants. “The positive impact of current fraud prevention technologies will still factor in 2010,” said Carl Clump, CEO of Retail Decisions. “We estimate a further 5 percent reduction in the value of CNP fraud throughout 2010. However, a return to previous growth trends in CNP fraud is expected for 2011, as fraudsters find more creative ways of conquering new security measures and tightened regulations.” Clump said as mobile devices like smart phones and tablets continue to provide more channels for ecommerce, criminals will leverage the new technology for their gain before fraud prevention measures catch up.