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Understanding card fraud Debit and credit card fraud: the problem

Card swipe machine

The UK loses an estimated £1.2m to card fraudsters each day

It's estimated that each day around £1.2m is lost due to card fraud in the UK – which works out as one theft every nine seconds – and one in every three people has been a victim of card fraud.

The introduction of chip-and-Pin technology has helped to curb the problem, but debit and credit card fraud continues.

The various types of card fraud include:

Card-not-present (CNP) fraud

This includes fraud conducted over the internet, by telephone, fax and mail order and is perpetrated when criminals obtain debit and credit card details and use them to make fraudulent transactions.

It’s the largest type of card fraud in the UK.

Because neither the debit or credit card nor the cardholder is present, businesses can't check the physical security features of the card to determine if it’s genuine.

Card skimming

The most common type of cash machine fraud is known as ‘skimming’.

This is where thieves attach card readers and small cameras to cash machines. These capture your card details. At the same time the cameras film you keying in your Pin.

Another ploy is to use card readers to capture debit and credit card details elsewhere – for example, in restaurants and petrol stations.  A corrupt employee puts your card through a device, without your knowledge, which electronically copies the data from your card's magnetic stripe.

With both types of fraud you'll often be unaware until your statement arrives, showing debit and credit card purchases that you didn't make.

Bank details phishing

Criminals send emails that appear to come from your bank to get you to enter passwords and account details on a fake version of your bank’s website. 

The number of these ‘phishing’ emails being sent out has increased dramatically in the last few years.

For more details, read the .

Pharming

This relies on a computer virus that redirects you to a fake website when you attempt to access your online bank account.

Intercepting financial mail

Criminals steal new credit and debit cards and cheques from the mail and then use them to buy goods. At particular risk for this type of fraud are properties with communal letterboxes, such as flats and student residence halls.

What to do if you're a victim of debit or credit card fraud

Call your card issuer immediately and cancel your cards. Contact credit reference agencies Experian, Callcredit and Equifax to check no fraudulent applications for credit have been made in your name. Read the Which? guide to checking your credit file for more detail.

Unless you've been involved in the fraud or have been grossly negligent – for example, writing down your Pin and leaving it with your card – the most you can be liable for fraud on debit and credit cards is £50, and this is normally waived.

For more information on card fraud prevention, visit the Card Watch website operated by the credit card industry body Apacs.