Good practice in e-tailing
Fraud
There are various methods involving plastic cards by which fraud is committed. Transactions via the internet can present opportunities for 'card not present' fraud, i.e. fraud that happens when the card or its holder are not present at the point of sale.
This type of fraud generally happens because card details have been obtained fraudulently and then used to make a purchase. Card details can be taken from discarded receipts or may be copied down without the cardholders knowledge. The genuine cardholder may not be aware that a fraud has been committed until they see their statement.
The costs of card fraud
According to APACS (the Association for Payment Clearing Services) card fraud losses in Britain were £535.2m in 2007. £290.5m of this is accounted for by Card Not Present (CNP) fraud which includes fraud over the internet. CNP is the biggest fraud type, up by 37% from 2006 and accounting for over half of all fraud.
Fraud prevention
Banks, retailers, police and the Home Office are working in partnership to tackle fraud through a number of initiatives. A large amount of fraud can be prevented if consumers and retailers take simple measures to protect themselves. Many of the publications referred to on this site suggest steps that can be taken by customers, retailers and other businesses to improve security and help reduce
Last update: Thursday, July 24, 2008