Plastic Card Fraud
How much plastic card fraud is there?
APACS (the UK payments association) is a card industry/banking body that collects and publishes statistics about plastic card fraud. Their figures for 2007 show that plastic card fraud losses were £535.2m. This was an increase of around 25% from the previous year (£427m).
The table below shows the amount of fraud since 1997.
Year | Amount of cheque and credit card fraud* | Change | % change |
|---|---|---|---|
1997 | £122.0m | +£24.9m | +20% |
1998 | £135.0m | +£13.0m | +10% |
1999 | £188.4m | +£53.4m | +28% |
2000 | £317.0m | +£128.6m | +40% |
2001 | £411.5m | +£94.5m | +30% |
2002 | £424.6m | +£168.9m | +3% |
2003 | £420.4m (adjusted) | -£4.2m | -1% |
2004 | £504.8m | +£84.4m | +20% |
2005 | £439.4m | -£65.4m | -13% |
2006 | £427.0m | -£11.4m | -3% |
| 2007 | £535.2m | +£108.2m | +25% |
* on UK issued cards
How does plastic card fraud happen?
Criminals commit plastic card fraud in different ways. In 2007 the most common type of fraud was card not present (CNP) fraud which takes place where neither the card, nor the cardholder are present at the point of sale (for example over the internet, or by telephone or mail order). Other examples of fraud are:
counterfeit fraud (where a card is copied without the cardholders knowledge)
use of cards that have been reported as lost or stolen
mail non receipt fraud (where a newly issued card is intercepted in the post before the genuine cardholder receives it)
identity theft (where a criminal uses fraudulently obtained personal information to open or access card accounts in someone else's name.
The table below shows the losses resulting from different types of card fraud in 2007*.
Type of fraud | Amount** |
|---|---|
Card Not Present (CNP) | £290.5m |
Counterfeit | £144.3m |
Lost or stolen | £56.2m |
Mail non receipt | £10.2m |
Card Identity Theft | £34.1m |
Total | £535.2m |
*on UK issued cards.
**Numbers are rounded.
Where can I find out more?
If you want more information about the different types of plastic card fraud see Fraud the Facts 2007 published by APACS. This useful booklet includes explanations of the various types of plastic card fraud, what action is being taken to combat them, and how to avoid becoming a victim.
Last update: Wednesday, April 30, 2008