ReD: 2010 CNP Fraud in U.K. Will Fall by 9%
Sept. 10, 2010
There is good news for CNP merchants in the U.K. British merchants are expected to lose £242 million in fraud perpetrated during card-not-present transactions by the end of 2010, about 9 percent less than last year, according to international fraud prevention company Retail Decisions (ReD). Through the first six months of the year, ReD estimated CNP fraud losses of £122 million compared to £134 million in the first half of 2009. ReD said U.K. shoppers are clearly becoming more accustomed to requests for security information online and over the phone, and are more likely to know strategies to protect themselves. “Many U.K. retailers have already benefited from using the latest fraud prevention technologies and techniques to protect themselves and their customers, and this is reflected by payment fraudsters being deterred from targeting them,” said Carl Clump, CEO of ReD. “In support of this, consumers are becoming wiser to the tactics. However, these criminals are persistent and continually develop new methods to defraud merchants.” Despite the predicted fall in Card Not Present fraud in the U.K., ReD’s projections show that criminals are trying to maximize returns by targeting higher value items.