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Card fraud rife despite Chip and Pin

April 7, 2009 by admin  
Filed under News, News-Credit-Cards

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A few years ago the nation was introduced to Chip and Pin technology which was a new type of technology that had been designed to increase security for plastic card users and to cut down on the rising level of card fraud that was being seen across the country.

However, according to some industry officials this is something that has not happened, as it is being reported that despite chip and pin technology card fraud has continued to rise.

Over the past year it is thought that the value of in the UK may have exceeded £600 million, and with fraudsters using ever sophisticated methods to carry out their fraudulent crimes this figure could continue to increase even though the country uses Chip and Pin. Chip and Pin technology was launched around five years ago, and it costs millions of pounds to implement. However, it has not stopped hundreds of millions of pounds worth of card crime from taking place.

Officials from the banking industry have said that the banks are going whatever they can to try and minimise on card fraud in the UK, and one spokesperson stated: “It is difficult to pursue some of these gangs because they are located overseas in a different jurisdiction and they use the internet to commit their crimes. However, generally, we are getting better at spotting frauds earlier and they are getting away with less per transaction as a result.”

Often the fraud involves transactions where the actual card does not have to be present, such as telephone and online transactions, and this is known as CNP fraud.

One official said: “As the name suggests, this means that the fraudster uses a stolen card number on the internet or by mail order. This is less risky as they don’t have to physically go to a shop to hand over a counterfeit card.”

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