Card fraud falls as online banking becomes focus
10 Mar 10
Fraudsters are continuing their switch from traditional card fraud to raiding online bank accounts, according to new research
Fraud losses on UK credit and debit cards totalled £440m in 2009 - a drop of 28 per cent compared with the previous year, according to the UK Cards Association.
But the number of "phishing" attacks, when fraudsters trick people into entering their personal details on a website or in an e-mail, rose by 16 per cent in the same period.
The fall in card fraud is the first recorded for three years, with criminals now using a series of methods aimed at targeting online banking, which has risen in popularity.
The UK Cards Association said that criminals were hoping to avoid banks' own security controls by tricking people out of their personal details through scams, or by infecting home computers with software that gathers these details.
As a result, the total amount of online banking losses reached £59.7m in 2009, a 14 per cent rise compared with the previous year.
Stephen Ley, partner at Deloitte, said: "In the next year clear customer information from banks will remain key to reduce fraud further. A better educated consumer is less likely to fall foul of phishing attacks.
"Customers need to protect themselves on their computer, remaining vigilant and using good security software."