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Home | News | Phishing cost UK banks £12m last year
Phishing cost UK banks £12m last year
, 20 March 2005Phishing scams and Trojan keystroke loggers caused an estimated £12 million worth of UK online bank fraud last year, official figures reveal.
Data from payments clearing body APACS reveals that total UK card fraud losses rose 20 per cent to £504.8 million in 2004. Although new chip and PIN technology has been introduced in the last year, the credit card industry has not unveiled any new plans to tackle card-not-present fraud for phone, internet and fax transactions. Card-not-present fraud rose by 24 per cent to £150.8 million in 2004 and it remains the single biggest type of card fraud.
It is predicted that chip and PIN will lead to further rises in card-not-present fraud, where liability for losses rests with merchants and not the card issuing companies. ID theft on cards has also shot up 22 per cent to £30.2 million in 2004, although it still remains a small proportion of overall losses. In the first year that online fraud figures have been compiled, APACS said some of the total was down to thieves targeting the high volumes of new chip and PIN cards sent out in the post. Fraud on cards stolen before cardholders received them in the post soared by 62 per cent to £72.9 million.
Sandra Quinn, director of corporate communications at APACS, said: "As more of us use a PIN the harder the criminal's life becomes. But clearly they are going to keep targeting cards.
Data from payments clearing body APACS reveals that total UK card fraud losses rose 20 per cent to £504.8 million in 2004. Although new chip and PIN technology has been introduced in the last year, the credit card industry has not unveiled any new plans to tackle card-not-present fraud for phone, internet and fax transactions. Card-not-present fraud rose by 24 per cent to £150.8 million in 2004 and it remains the single biggest type of card fraud.
It is predicted that chip and PIN will lead to further rises in card-not-present fraud, where liability for losses rests with merchants and not the card issuing companies. ID theft on cards has also shot up 22 per cent to £30.2 million in 2004, although it still remains a small proportion of overall losses. In the first year that online fraud figures have been compiled, APACS said some of the total was down to thieves targeting the high volumes of new chip and PIN cards sent out in the post. Fraud on cards stolen before cardholders received them in the post soared by 62 per cent to £72.9 million.
Sandra Quinn, director of corporate communications at APACS, said: "As more of us use a PIN the harder the criminal's life becomes. But clearly they are going to keep targeting cards.