New figures released today by UK payments association Apacs suggest that online banking fraud is on the increase.
In total, credit card fraud fell from over £439 million in 2005 to £428 million in 2006, attributed at least in part to the introduction of chip and pin.
However, the period between 2005 and 2006 saw a 44 per cent increase in online banking fraud, rising in monetary value from £23.2 million to £33.5 million.
This is also attributable to chip and pin, according to Apacs spokesperson Sandra Quinn.
Noting that chip and pin has had “a hugely positive effect” on fraud losses over the counter in UK shops and stores, she notes that there are other methods that allow fraud to be perpetuated.
“We are seeing more fraud on transactions that do not use chip and pin ñ such as over the internet and phone, by mail order and abroad in countries that have not yet fully upgraded to chip and pin,” she said.
Since chip and pin was introduced two years ago, fraud losses at UK retailers have fallen approximately £146.7 million.
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