Magazine article American Banker

U.K. Fraud Losses Dropped Last Year

Magazine article American Banker

U.K. Fraud Losses Dropped Last Year

Article excerpt

Byline: Stephanie Bell

The banking industry's fraud protection initiatives are having an effect in the U.K., as fraud losses related to payment cards, checks and online banking decreased last year, according to research by the U.K. Payments Council.

Total fraud losses on cards fell 16.9%, to $592 million, from 2009, the lowest yearly total for card fraud since 2000, the council said in a report released Wednesday.

The initiatives banks are using include educating merchants about protecting their chip-and-PIN acceptance equipment and increasing merchant and consumer adoption of such online fraud prevention programs as Verified by Visa and MasterCard SecureCode, the council said.

Verified by Visa and MasterCard SecureCode use a "3-D Secure" protocol and require cardholders to register their cards with the brands to get a secure password to use with online transactions. Merchants also must use the 3-D Secure software on their e-commerce sites. Merchants that accurately process and verify transactions through either service face no charge-back risk.

Banks also have increased the sharing of fraud data and intelligence, the use of fraud detection services and chip-and-PIN card acceptance abroad, according to the council.

The U.K. banking industry also had a 3% drop in check fraud losses, to $47 million. The industry most likely will see a more-dramatic drop as consumers continue to decrease their check use, said Matt Simester, a director of Auriemma Consulting Group in the U.K.

Online banking fraud losses totaled $76 million, down 21. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.