Card fraud continues to fall

The UK Cards Association has today revealed that credit and debit card fraud continues to decline.

According to the Association, fraud losses on UK credit and debit cards totalled £365.4 million in the 2010 year – a drop of 17% compared with 2009.

The figure represented a 10-year low and compares with the record high of £610 million in 2008.

The group attributed the ongoing fall to a number of factors – one being the introduction of chip-and-pin, consumer awareness, together with continuous efforts by the industry to deter and prosecute fraudsters.

Meanwhile, phone, internet and mail-order fraud fell 15% – as a result of the increasing use of systems such as Verified by Visa and Mastercard Secure Code.

However, phone banking fraud losses were up 5% to £12.7million. Cheque fraud continued to fall – but this was attributed to the severe decline in cheque usage.

Commenting on the figures, Melanie Johnson, who chairs the UK Cards Association, said: “The cards industry is greatly encouraged by the major decrease in card fraud losses for a second successive year, but we will not be easing off our efforts as a result.”