Internet fraudsters enjoy boom in U.K.

TechWorld.com - LONDON -- Internet fraudsters have had another good year, according to the U.K.'s Association for Payment Clearing Services (APACS).
The banking organization's latest annual figures show that "card not present" (CNP) fraud in the country rose by 29% compared to 2004, reaching $175 million in the six months to June this year. Of that, fraud specific to Internet transactions rose 5%, to $101 million. CNP refers to transactions where sales can be carried out without the presence of the credit card, such as in mail-order or Internet sales.
The figures are compiled from real losses incurred by U.K. banks.
The good news is that the introduction of chip and PIN technology to the U.K. in the past year has cut overall levels of fraud by 13% to $382 million. However, criminals have migrated to CNP fraud.
Credit and debit card counterfeiting fell 31%, while theft launched after mail interception or the direct stealing of a card fell 27% and 37%, respectively.
Identity theft carried out against card holders also fell unexpectedly by 16%, but this masks the rise of more complex ID thefts not directly involving plastic. There are no figures on this area of crime in these statistics as they cover only financial products monitored by APACS.
Online banking fraud -- one of the most important statistics in the report because it will include high-profile techniques such as phishing -- rose markedly from $7 million in 2004 last year to about $25 million this year.
According to APACS, part of this rise is due to the increasing volumes of online activity.
The report notes that many Britons are unaware of the danger posed by criminals hacking their online banks through phishing or other information theft techniques. Consumer are encouraged to use the Banksafe Online Web site to educate themselves about the risks of online banking and commerce, and to report suspected fraud.