CNP Fraud in U.K. Sees Bump after Several Years of Decline
June 9, 2014
Despite a 66 percent increase in online spending between 2008 and 2012, online fraud losses in the U.K. have dropped 23 percent from a high of £182 million ($306 million) in 2008 (several years after the introduction of EMV in the U.K.) to £140 million ($235 million) in 2012, according to a report released Friday by the UK Cards Association. The UK Cards Association Annual Report 2014 did say the trend for the first half of 2013 was in the other direction, however. From January to June of 2013, online fraud losses jumped to £142 million ($240 million). The Cards Association—a consortium of banks and companies in the payments industry—said enhanced security features, which contributed to the slow reduction in card-not-present fraud, have forced fraudsters to use other methods.
“As fraudsters have found it harder to attack the system, they have turned to deception crimes aimed at consumers themselves,” the authors wrote in the report. “These typically seek to trick consumers into parting with their financial and personal information, including their passwords, PINs and payment cards.”