Increment in Card Fraud, UK Finance registers

There has been a 5% increase in plastic credit card fraud cases.

UK Finance released a report on which compared the numbers of financial fraud up to March 2019

February 2020

It reported that Plastic Credit Card Fraud has increased over the past few years and comparing March 2018 to March 2019, there was a 5% increment elevating the cases to 2,745,539.

Although online transaction security has rise, and the police have been able to stop more cases with fewer losses than before, Plastic Card Fraud seems to have re-emerged as a trend.

Out of 2,745,539 fraud cases, 460,142 relate to fraud committed on lost or stolen cards and 65,907 cases to counterfeit, making up 20% of fraud cases reported.

Even when the remote purchase is the most common method of fraud, it is intriguing that the number of plastic cards frauds is increasing.

It was between 2016 and 2017 where the most significant jump was made, with almost 120,000 new cases, elevating the numbers by March 2017 to 350,279 defrauded accounts.

Aurora Bonin, Senior Manager Media from HSBC UK Bank, said: “Our security centre includes important information on how customers can stay safe when using their credit cards, and we also share fraud-related insights and data into UK Finance about countermeasures.”

Bonin believes that one of the ways was declaring a £30 limit on individual contactless transactions “It helped reduced big amounts losses”.

Although UK Finance hasn´t yet understood why plastic card fraud is back on the criminal radars, they manage to identify the new methods

Eleanor Crabb​, Press Officer of UK Finance said: “With the rollout of chip technology in the UK and around the world leading to significant decreases in counterfeit card losses, criminals are using more low-tech methods.”

“To carry out this type of fraud, criminals use tactics including distraction thefts and card entrapments at ATMs,” Crabb added.

The report describes these “low-tech methods” that criminals “typically shoulder-surf victims in shops and at ATMs.”

“Criminals also use small cameras, attached to ATMs and directed at the keypad”, the report said. “In some cases, the victims are even tricked into handing their cards and PINs over to a criminal on their doorstep.”

Data also shows whereas men of age groups of 65+ are more frequent victims of online fraud, both men and women aged between 45 to 54 are the primary victims of plastic card fraud.

Due to this spike new rules established that costumers will have to verify transactions with their PIN.

“Once their total contactless payments exceed a cumulative value of roughly £130 (€150) or when five contactless payments have been made” UK Finance updated.