Chip-and-pin cards cut down fraud numbers |
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Published
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Wed, 08 Mar 2006 02:05
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LONDON: The introduction of the chip-and-pin technology based credit and debit cards has helped bring down card frauds significantly for the first time in 10 years in 2005, according to figures from U.K. payments association APACS.
Total losses due to card frauds fell by 13 per cent, from 504.8 million pounds in 2004 to 439.4 million pounds in 2005, said APACS. Frauds committed by using cloned or stolen cards have also come down. The only instance where there has been a rise in the number of cases was in online or mail transactions where there is no physical presentation of cards. Such cases rose 21 per cent leading to losses of 183 million pounds.
APACS said in a statement that this is a "cast-iron proof" that chip-and-pin technology is doing its job.
Britain introduced the technology in 2003 and now it is mandatory for all card-using consumers to use such cards and key in their individual four-digit pin, as it is no longer possible to just sign while making payments.
Cards with the built-in computer chips are harder for fraudsters to fake as they require the correct pin to use. The amount of fraud committed on counterfeit cards fell 25 per cent to 97 million pounds in 2005, while losses from stolen or lost cards were down 22 per cent to 89 million pounds. Frauds committed by stealing cards while in transit too fell sharply because the cards and pins are sent separately.
APACS spokesperson Sandra Quinn said there would be further reduction in card-related frauds in the coming years.
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Chip and PIN cards can cause problems for elderly, disabled, says consumer watchdog 