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One third of UK adults are victims of card fraud

According to the annual Card Fraud Index released yesterday by life assistance company CPP, Card fraud has now affected a total of 13 million people in the UK during their lifetimes, that's one third of all adults. Looks like the risk of becoming a card fraud victim is moving from the possible to the probable?

January 19, 2011 by Lachlan Gunn — Director, BenAlpin Ltd

But there is some good news. 2010 saw a three per cent reduction in the number of card fraud incidences 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 also reveals the methods criminals are using, with most victims (20%) having the magnetic stripe on their card cloned at an ATM or via a payment terminal. 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 £417 ($663) with one in 20 (four per cent) reporting losses of more than £2,000 ($3,176).

What can you do to keep your card safe? There is a wealth of information on how to avoid card fraud on the SafeCard website provided by the Irish Payment Services Organisation (IPSO), as well as advice to retailers. For keeping safe at an ATM see cardholder security tips provided by the European ATM Security Team (EAST).

Above all be aware (or should that read 'beware'?) and take a holistic view about the security of your cards. After all, card fraud couldn't happen to me ... could it?