Foreign card fraud at five-year low

FRAUD committed on UK credit and debit cards overseas has fallen to its lowest level since 1999, official figures have revealed.

Fraud committed on UK issued cards last year totalled £92.5m, down from a high of £138.4m in 2001 and the lowest figure for five years. Foreign fraud now accounts for 18% of total UK card fraud, which hit £505m in 2004.

Banking industry body Apacs said the improvement was attributable to improved fraud detection systems, which enable card companies to spot unusual transactions associated with fraudulent use of cards.

A specialist police team sponsored by the banking industry, the Dedicated Cheque and Plastic Crime Unit, has also helped clamp down on card counterfeiting rings.

Banks and card providers are keen to address the problem of overseas fraud following the introduction of chip and Pin in the UK. Some lenders have started to block overseas transactions they deem unusual while others are asking customers to let them know when they are going overseas.

Apacs said it expects overseas card fraud to fall further as more countries adopt chip and Pin technology.

Communications director Sandra Quinn said: 'When you travel abroad, particularly in Europe, there is a growing chance that you will come across chip and Pin, the same system we have in the UK. This is good news for UK cardholders as it means that card criminals will increasingly find it harder to use stolen cards abroad.'

Just under half of overseas fraud was committed in three countries ? the US, France and Spain. Apacs predicted that the proportion of fraud committed in the US would increase as it has no plans to convert to the chip and Pin system.

An Apacs spokesman said: 'The card fraudsters are not just going to get proper jobs because of chip and Pin, they will target weaker links in the system and the US is one of those.'

Five of the top ten hotspots are now in Europe, a fall from a total of seven in 2003. Ireland and Switzerland are no longer in the top 10, whilst Japan and Canada have moved further up the table.