Originally published March 14 2005
Credit card fraud levels high in UK despite security precautions
by Mike Adams, the Health Ranger, NaturalNews Editor
In spite of new technologies integrating digital chips into credit cards and requiring PIN numbers, credit card fraud in the United Kingdom climbed to 500 million pounds in 2004, an increase of 20%. Around 100,000 credit cards were mailed out in the UK over the last year, and many of them were intercepted by criminals, generating a 62% increase in the number of fraud claims due to unreceived cards.
Credit and debit card fraud has soared to a record �500 million despite the introduction of new chip-and-PIN technology, it emerged today.
Banks, credit card companies and shop owners hoped that the new technology would reduce fraud because a four-digit personal identification number is harder to reproduce than a signature.
But far from deterring fraudsters, the new measures have encouraged criminals to steal more cards.
Figures from Apacs (the Association for Payment Clearing Services) show that losses to thieves rose by 20 per cent last year, equivalent to �10 for every adult in Britain.
Many were intercepted by criminals, resulting in a 62 per cent rise --- to �73 million --- in "mail non-receipt" fraud.
The sheer volume of cards sent out every day provided rich pickings for fraudsters who operate by getting their hands on plastic before it is received by the genuine customers.
Consumers duped by counterfeiters who illegally clone or skim cards lost nearly �130 million last year, a rise of 17 per cent.
Fraud at cash machines, a favourite resort of thieves, grew at an alarming rate, up by 81 per cent to nearly �75 million Chip and PIN claims to be a sophisticated anti-fraud measure, yet there is no deadline for its implementation.
Cards without the new technology are still being issued and of 141 million credit and debit cards in circulation, one in three are still the old signature-only type.
Furthermore, 15 per cent of retailers have yet to install tills that accept PINs, even though retailers without chip and PIN in-store have been liable for fraudulent transactions since January 1 this year.
"Fraudsters can disable the chip, for instance by smacking it with a hammer, and pay for goods using a signature," Mr Bushell said.
All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing LLC takes sole responsibility for all content. Truth Publishing sells no hard products and earns no money from the recommendation of products. NaturalNews.com is presented for educational and commentary purposes only and should not be construed as professional advice from any licensed practitioner. Truth Publishing assumes no responsibility for the use or misuse of this material. For the full terms of usage of this material, visit www.NaturalNews.com/terms.shtml