Quarter of Adults Affected by Card Fraud
YORK, England, January 19, 2011 /PRNewswire/ -- Card fraud has now affected a total of 13 million people in the UK according to new research (1).
The annual Card Fraud Index released today from life assistance company CPP (
http://www.cpp.co.uk/) has named
Brighton as the card fraud capital of the country. With the south coast city jumping from tenth place in the number of people falling victim at least once to card fraud.
The top five card fraud hotspots in the UK are Brighton (38 per cent), London (34 per cent), Manchester (33 per cent), Bristol andLeeds at joint fourth place (32 per cent) and Edinburgh (31 per cent) (2).
But there is some good news. 2010 saw a three per cent reduction in the number of card fraud incidences (3) with seven per cent of people saying they had suffered from card fraud in the last 12 months compared to 10 per cent in 2009. However, card fraud is still a problem and people need to remain vigilant and take responsibility when using their cards.
The Card Fraud Index (
http://www.cpp.co.uk/) also reveals the methods criminals are using, with most victims (20 per cent) having the magnetic stripe on their card cloned at an ATM or via a Chip and PIN machine. This is a three per cent increase on 2009. One in five victims have been defrauded online with criminals using the internet to obtain card details.
Alarmingly a third of card fraud victims (33 per cent) don't even know how they became a financial victim, with a third hearing directly from their bank (34 per cent) and six per cent being refused money at an ATM. A further six per cent found out when their card was refused at point of sale.
Victims of card fraud reported the average amount stolen was GBP417 with one in 20 (four per cent) reporting losses of more thanGBP2,000.
Although card fraud has decreased year-on-year, consumers are still practicing behaviour that could put them at risk. 18 per cent don't check ATMs to see if they have been tampered with, 17 per cent don't shield their PIN numbers at cash points and most worryingly 16 per cent admit to letting their cards out of sight in shops and restaurants. Moreover, consumers take an average of more than eight hours to report their cards lost or stolen, giving ample time for fraudulent use.
Sarah Blaney, card fraud expert at CPP (
http://www.cpp.co.uk/), said: "In 2010 we saw a three per cent decrease in card fraud incidents in the UK (3) compared to the previous year. This in itself is good news and shows how progress is being made to reduce the number of victims. In particular, online fraud has decreased, which could be a result of industry initiatives such as Verified by Visa and MasterCard SecureCode.
"We are also continuing to see consumers protecting themselves with preventative measures such as Card Protection policies that immediately cancels lost and stolen cards. However, with card fraud costing the UK GBP440 million a year (4), consumers still need to remain vigilant and not let their guard down. We want to see the continued decrease in card fraud and hope that consumers will take responsibility alongside industry initiatives."
Dr
Bernard Herdan, CEO, National Fraud Authority, said: "The ongoing decrease in card fraud is a very positive sign that industry safety measures and consumers ability to self-protect are improving. However, it is important to remind consumers not to become complacent about taking precautions when using credit and debit cards. Visit
http://www.actionfraud.org.uk regularly to keep up-to-date with the latest fraud prevention advice (5)."
Worst cities for card fraud:
City Percentage of people affected by card fraud at least once
Key (1) = position in fraud rankings
2010 2009 2008 2007
Brighton 38 (1) 23 (10) 27 (5) 12
London 34 (2) 35 (2) 38 (1) 28 (1)
Manchester 33 (3) 21 29 (4) 22 (4)
Leeds 32 (4) 27 (5) 19 19 (8)
Bristol 32 (4) 20 18 22 (3)
Edinburgh 31 (5) 24 (9) 23 (9) 18 (10)
Southampton 29 (6) 28 (4) 24 (7) 14
Norwich 28 (7) 30 (3) 25 (6) 19 (9)
Birmingham 27 (8) 23 23 (8) 25 (2)
Liverpool 25 (9) 15 19 14
Plymouth 24 (10) 24 (7) 22 (10) 16
Glasgow 24 (10) 24 (8) 31 (3) 20 (6)
Cardiff 20 37 (1) 34 (2) 20 (5)
Newcastle 20 25 (6) 16 9
Nottingham 20 23 (10) 12 19 (7)
Sheffield 18 17 14 18
Top tips from CPP to help avoid being a victim of card fraud
1) Don't carry multiple debit/credit cards in a wallet - only carry the essential cards you need
2) Don't leave belongings unattended while shopping
3) Don't carry debit/credit cards loose in a bag or pocket
4) If your cards are registered with a Card Protection company make sure you have their emergency loss reporting number
5) Don't ever write down your PIN number
6) Don't let a shop assistant take your debit/credit card out of sight - they could be copied or cloned
7) Don't let someone else take money out on your behalf
8) Check your receipts against your statements when you get home
9) If you are concerned your cards may have been lost or stolen, contact your bank immediately to get the card cancelled
10) Make sure your bank has up-to-date contact details for you, including your mobile phone number in case they need to check if transactions are genuine
Notes to Editor
(1) The UK adult population according to ONS is 49,051,000. 28 per cent of adults have been affected by card fraud in their lifetimes. 28 per cent of 49, 051,000 = 13,734,280
(2) Figures include all of those that have been affected by card fraud at least once
(3) The Card Fraud Index in 2010 revealed that 10 per cent of people had been affected by card fraud in 2009. This year the results show that 7 per cent of people have been affected by 2010 a 3 per cent decrease.
(4) In 2009, The UK Cards Association reported total card fraud losses decreased by 28 per cent to GBP440.3 million.
(5) The National Fraud Authority (NFA) runs Action Fraud, the UK's first national fraud reporting centre that provides a single point of contact for fraud victims where they can both report a fraud and seek guidance and advice.
Research Methodology
Research was carried out online by Research Now among 2,009 people on 16th December 2010.
About CPP
The CPPGroup Plc (CPP) is an international marketing services business offering bespoke customer management solutions to multi-sector business partners designed to enhance their customer revenue, engagement and loyalty, whilst at the same time reducing cost to deliver improved profitability.
This is underpinned by the delivery of a portfolio of complementary Life Assistance products, designed to help our mutual customers cope with the anxieties associated with the challenges and opportunities of everyday life.
Whether our customers have lost their wallets, been a victim of identity fraud or looking for lifestyle perks, CPP can help remove the hassle from their lives leaving them free to enjoy life. Globally, our Life Assistance products and services are designed to simplify the complexities of everyday living whether these affect personal finances, home, travel, personal data or future plans. When it really matters, Life Assistance enables people to live life and worry less.
Established in 1980, CPP has 10 million customers and more than 200 business partners across Europe, North America and Asiaand employs 1,900 employees who handle millions of sales and service conversations each year.
In 2009, Group revenue was GBP292.1 million, an increase of more than 12 per cent over the previous year.
In March 2010, CPP debuted on the London Stock Exchange (LSE).
What We Do:
CPP provides a range of assistance products and services that allow our business partners to forge closer relationships with their customers.
We have a solution for many eventualities, including:
- Insuring our customers' mobile phones against loss, theft and damage
- Protecting the payment cards in our customers' wallets and purses,
should these be lost or stolen
- Providing assistance and protection if a customer's keys are lost or
stolen
- Providing advice, insurance and assistance to protect customers against
the insidious crime of identity fraud
- Assisting customers with their travel needs be it an emergency (for
example lost passport), or basic translation service
- Monitoring the credit status of our customers
- Provision of packaged services to business partners' customers
CPP is an award winning organisation:
- Winner in the European Contact Centre Awards, Large Team of the Year
category, 2010
- Finalist in the European Contact Centre Awards, Best Centre for
Customer Service, Large Contact Centre of the Year categories, 2010
- Winner in the National Sales Awards, Contact Centre Sales Team of the
Year category, 2010
- Finalist in the National Insurance Fraud Awards, Counter Fraud
Initiative of the Year category, 2009
- Finalist in the European Contact Centre Awards, Large Team and Advisor
of the Year categories, 2009
- Named in the Sunday Times 2008 PricewaterhouseCoopers Profit Track 100
- Finalists in the National Business Awards, 3i Growth Strategy category,
2008
- Finalist in the National Business Awards, Business of the Year
category, 2007, 2009 and Highly Commended in 2008
- Named in the Sunday Times 2006, 2007, 2008 and 2009 HSBC Top Track 250
companies
- Regional winner of the National Training Awards, 2007
- Winner of the BITC Health, Work and Well-Being Award, 2007
- Highly Commended in the UK National Customer Service Awards, 2006
- Winner of the Tamworth Community Involvement Award, 2006. Finalist in
2008
- Highly Commended in The Press Best Link Between Business and Education,
2005 and 2006. Winner in 2007
- Finalist in the National Business Awards, Innovation category, 2005
For more information on CPP click on http://www.cppgroupplc.comwww.ePINDebit.com www.e-PINDebit.com www.iPINDebit.com www.PINDebit.mobi
“In 2010, we established PaySecure as the standard for PIN debit payments on the Internet, with a growing base of merchants, issuers and EFT networks,” said Bahl. “In 2011, our goal is to expand the channels where PIN debit can be accepted, like a mobile phone and even kiosks – giving consumers a consistent payment experience and merchants lower fraud and lower costs – while introducing new applications for the product within those channels, such as P2P payments and online banking authentication.”
