Fraud with Credit Cards Up?

The UK Cards Association has expressed concern this week that credit card fraud is up again despite the chip and pin system being fully implemented.  Data from their recent survey shows significant increases in the losses reported from card scams.  Credit card fraud shows a cost of £610 million in 2008, which is 43 percent more than 2006.  It also showed in the last year 2.8 million fraudulent payments were made.  These transactions are “card not present” which means the company did the charge without seeing the card.  These types of transactions accounts for 77 percent of all credit card fraud.

It suggests that the credit card scammers have found a way to get by the chip and pin systems at the retailers.  The system was supposed to make it tougher for fraudsters to get the credit card information.  However, with a pin it is easy for a person to look over the shoulder or install a camera to look over ones shoulder and steal the number.  These criminals are coming up with even more sophisticated systems in order to beat the chip and pin.  Card cloning, facility take over and ID theft are all means to the fraudulent ends.

The UK Cards Association stated that chip and pin was brought in to tackle fraud such as with lost or stolen cards.  It has been successful in this premise, but it still cannot stop other activities.  All the fraudsters have to do is set up a fake machine, act like they are making the transaction, and store the credit card information in the machine.  They can do wireless stealing as well with hacking into the credit card machine to steal the numbers.

The problem is that consumers are not aware enough when using their cards, to ensure no one is around paying too much attention.  They need to be more active and careful.  Yet, this does not stop all fraud.