Thursday, October 04, 2007
U.K. Card Fraud in U.S. Increases
The U.S. now exceeds France as the number one country where U.K. based credit and debit card losses occur. Fraudulent transactions of U.K. accounts increased 126 percent in the first half of 2007 as compared to the same period a year earlier. 2006 fraud involving U.K. accounts in the U.S. was $34 million. In-person fraudulent transactions fell 11 percent.
In the U.K. the industry has adopted the "chip-and-PIN" technology so that machines used for debit transactions need to "see" the chip in the card and receive the correct PIN, before funds are disbursed. But when that card is skimmed and the PIN is obtained, it can still be used in the U.S. where the chip is not required to complete transactions.
This report is from Association of Payment Clearing Services (APACS) which also reported a 44 percent increase in "card not present" transactions. These are often accounts where the card data is used to purchase goods online or over the telephone. The merchant never has an opportunity to see or swipe the card.
On a related note, The Better Business Bureau in Boise, Idaho reports that consumers are being called and asked to verify credit card information. "The caller or the contactor has enough information, enough real verifiable information to make the contact seem very plausible," says the BBB's Nora Carpenter. The caller then asks the consumer to verify the three digit security code on the back of the card. The code is needed to complete many transactions when the card is not present. The credit card company would have access to this without asking the person they believe is the cardholder. Consumers should be cautious.
The U.S. now exceeds France as the number one country where U.K. based credit and debit card losses occur. Fraudulent transactions of U.K. accounts increased 126 percent in the first half of 2007 as compared to the same period a year earlier. 2006 fraud involving U.K. accounts in the U.S. was $34 million. In-person fraudulent transactions fell 11 percent.
In the U.K. the industry has adopted the "chip-and-PIN" technology so that machines used for debit transactions need to "see" the chip in the card and receive the correct PIN, before funds are disbursed. But when that card is skimmed and the PIN is obtained, it can still be used in the U.S. where the chip is not required to complete transactions.
This report is from Association of Payment Clearing Services (APACS) which also reported a 44 percent increase in "card not present" transactions. These are often accounts where the card data is used to purchase goods online or over the telephone. The merchant never has an opportunity to see or swipe the card.
On a related note, The Better Business Bureau in Boise, Idaho reports that consumers are being called and asked to verify credit card information. "The caller or the contactor has enough information, enough real verifiable information to make the contact seem very plausible," says the BBB's Nora Carpenter. The caller then asks the consumer to verify the three digit security code on the back of the card. The code is needed to complete many transactions when the card is not present. The credit card company would have access to this without asking the person they believe is the cardholder. Consumers should be cautious.
Comments:
Post a Comment
