CNP fraud on the wane

Losses from phone, internet and mail order shopping fraud fell sharply in 2009

CNP fraud had risen steeply in previous years

UK losses sustained from card-not-present (CNP) fraud fell for the first time ever in 2009, new figures reveal.

According to data from Financial Fraud Action UK - which recently replaced the APACS brand - total fraud losses on UK debit and credit cards dropped 28 per cent last year to £440.3m.

CNP fraud - which had risen sharply in previous years to become something of a channel bogeyman - also fell back by 19 per cent £266.4m. This comprises phone, internet and mail order shopping fraud.

The drop was attributed to the increasingly sophisticated screening tools used by e-tailers and banks and the growth in the use of MasterCard SecureCode and Verified by Visa.

Melanie Johnson, chair of the UK Cards Association, said: “A fall in card fraud is good news for everyone - UK consumers, retailers and the industry.”

Counterfeit fraud losses halved to £80.9m, fraud on lost or stolen cards was down 11 per cent to £47.9m, card ID theft fell 20 per cent to £38.2m and mail non-receipt fraud plunged 32 per cent to £6.9m.

Financial Fraud Action UK said the drops were also due to the work of the Dedicated Cheque and Plastic Crime Unit, the banking-sponsored special police unit.

But it wasn’t all positive as online banking losses clambered 14 per cent to £59.7m.

This was attributed largely to the more sophisticated methods employed by criminals to target online banking customers through malware.

Some 51,000 phishing incidents were recorded last year, up 16 per cent on 2008.