Online fraudsters turn to cards as banks toughen up

Online banking fraud is down but online purchases using stolen card details...

Online banking fraud is down but online purchases using stolen card details have shot up, according to figures from Apacs.

The UK payments body said that losses in the UK to online banking fraud fell by 33% to £22.6m in 2007 compared with 2006. A 44% increase was recorded in 2006 compared with 2005.

Sandra Quinn, director of communications at Apacs, attributed the fall to banks introducing security measures and greater customer awareness.

"Increased vigilance and the work that banks have done, such as rolling out two-factor authentication have helped. Customers are more aware because it would be hard not to be aware of online banking fraud now after four or five years of threats," Quinn said.

She added that banks were paying more attention to online fraud. "Banks are always going to protect the areas of biggest risk. As online banking fraud grows, banks have more initiatives to prevent it," she said.

Quinn warned that although online banking fraud appears to have been capped it could still rise again due to the inventiveness of online fraudsters.

Meanwhile criminals abroad using the internet to buy goods with stolen card details pushed overall card fraud up by 25%. According to Apacs, this fraud cost £223m and accounted for 77% of card-not-present fraud.

Quinn called for additional layers of security for consumers making internet payments. "We are looking for an additional layer of security and password protection that creates a bother hurdle for fraudsters," she said.



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