The cost of card-not-present (CNP) fraud could be more than double previous estimates, with the police and the government failing to take the problem seriously, a fraud protection specialist has claimed.
Figures recently released by payment clearing firm Apacs claimed CNP fraud cost the UK £290.5m in 2007, a 37 per cent increase on 2006.
However, Andrew Goodwill, director of fraud screening specialists The 3rd Man, told CRN that figure did not take attempted fraud and fraud on overseas cards into account.
Goodwill claimed attempted CNP fraud had risen by 200 per cent last year and could cost the UK up to £10bn in five years’ time.
“Attempted fraud was more than £500m last year, possibly £1bn. Fraudsters come to the UK because we are an easy target,” he said. “We need an internet police force, it would be easy and cheap to set up.”
Goodwill was unimpressed by the government’s £29m pledge last year to fight fraud over the next three years.
“That works out as 30p for every adult who uses the internet, which is absolutely ridiculous. The government will only do something when the taxman makes a loss,” he said.
Gina Loch, credit manager for online reseller Misco, indicated that her
company shared the details of attempted fraud with other retailers as a
“The police do not have the tools to solve this sort of crime. The banks are the ones making massive profits, they should be called on to put measures in place,” she said. “Fraud will continue to get worse.”
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