Credit card fraud dropped for the first time in nine years in 2003, new research has found.
Independent market analysts Datamonitor revealed losses due to fraud fell by 5% to £402.4m last year, compared to £424.6m in 2002.
However, the fall was almost entirely down to a reduction in the amount of fraud committed on UK cards abroad and that domestic card fraud was in fact still rising, albeit at a slower rate.
Card-not-present (CNP) counterfeit and fraud from lost and stolen cards accounted for more than 80% of cases, and the UK is now responsible for more than two thirds of Europe’s credit card fraud.
It’s hoped the introduction of Chip and PIN cards, which hold more information than the usual magnetic strip cards and require the user to tap in a pin number rather than signing a receipt, will significantly reduce fraud levels.
New cards are now more common in UK stores, with almost half of the U.K's checkout tills converted to accept payments.
The system has been a success on the continent, with France, its pioneers, halving the number of fraud cases since its introduction more than 10 years ago.
Many cite the late arrival of national identity cards as contributing to previous losses as credit card fraud jumped more than 44 per cent to £29.7 million last year.
Karina Purang, financial analyst for Datamonitor, said: “The UK has been successful in tackling fraud but more can be done. To this effect, the UK needs to look at other countries for best practice in anti-fraud measures and applies successful schemes in the UK market.”
