Report: CNP Fraud in U.K. Rose 10% in 2014
April 6, 2015
After surging in 2008 subsequent to the introduction of EMV in the U.K., card-not-present fraud moderated over the next three years—though it dwarfed counterfeit fraud in those years and continues to do so today. But, it has climbed in recent years and has topped £330 million for the first time since 2008, according to a new report from industry group Financial Fraud Action. The value of CNP fraud losses in the U.K. reached £331.5 million ($494.5 million) in 2014, an increase of 10 percent from the year before. By number of transactions, fraud has shown the same trends: counterfeit fraud dropped after 2008 and has stayed low. CNP fraud spiked in 2008, attenuated somewhat through 2011 and has climbed steadily since to more than one million fraudulent transactions in 2014, compared to around 952,000 in 2013 and 875,000 in 2008.
While counterfeit fraud losses also grew 10 percent from 2013 to 2014, they are well below their 2008 level (nearly £48 million($72 million) last year compared to £170 million ($254 million) in 2008). Overall, fraud losses attributable to card-not-present transactions (£331.5 million ($494.5 million)) accounted for nearly 70 percent of card fraud in the U.K. by value. The remaining 30 percent was divided among fraud on lost or stolen cards (£59.7 million ($80 million)), counterfeit fraud (£47.8 million ($71.3 million)), card ID theft (£29.9 million ($44.6 million)) and card non-receipt (£10.1 million ($15.1 million)).