Card fraud higher overseas Credit and debit card fraudsters head overseas
03 December 2008
Fraud losses on UK credit and debit cards are 14 times higher overseas than they are in this country, a new report claims.
If you’re concerned about card fraud the Which? guide to card fraud provides tips and advice on keeping your money safe.
A similar pattern is being seen in other European countries, such as France and Spain, according to a report by industry consultant Peter Welch.
Losses from overseas fraud accounted for 40% of total losses on UK credit and debit cards in 2007, rising to 43% in France and around half of all losses in Spain.
Overseas fraud 14 times higher than in UK
International card usage is much lower than domestic usage, overseas fraud losses are far higher as a proportion of the amount being spent, with international losses on UK cards actually 14 times higher than ones in this country relative to turnover.
Figures from payments group APACS show that card fraud rose by 25% in the UK to £535 million during 2007, despite the introduction of chip and Pin leading to a 67% fall in losses on the UK high street during the past three years to £73 million.
Counterfeit fraud rose by 46% last year to £144.3 million, mainly due to fraudsters copying UK cards and then using them abroad.
Online, telephone and postal fraud grows
Card providers are also facing a growing threat from so-called card not present fraud, with the fraudulent use of credit and debit cards to buy items over the internet, telephone or by post accounting for three-quarters of domestic losses in the UK in 2007, compared with only around a third in 2004.
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