Card fraud 'slashed' through chip and pin

The successful rollout of chip and pin technology has seen a dramatic reduction in card fraud, having improved the security of credit card transactions for consumers in the UK.

Figures from APACS highlight a steady decline in card fraud, believed to be the result of a wide uptake of chip and pin. In total, card fraud losses fell from £439.4 million in 2005 to £428 million last year while losses at retail outlets fell by 47 per cent.

Experts maintain that this is strong evidence of the success of chip and pin in reducing fraud, further supported by the fact that card-not-present credit card fraud has increased by 16 per cent. Sandra Quinn, director of communications at APACS, singles chip and pin as a key factor in tackling fraud.

"Chip and pin has had a hugely positive effect on fraud losses over the counter in UK shops and stores, but we are seeing more fraud on transactions that do not use chip and pin," she stated.

Chip and pin celebrated its first birthday last month, having been in operation for one year. Since then chip and pin credit cards have grown to represent 97 per cent of all payment cards in the UK.

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