Card-not-present fraud in the United Kingdom is on track to decline 9% this year compared with last year as merchants and consumers adopt more strategies to thwart fraud, Retail Decisions PLC, a London-based payment fraud prevention firm, announced Sept. 6.
Online, mail-order and telephone-based card fraud in the UK will reach £242 million (US$371 million or 293 million euros) at the end of 2010, down from £266 million last year, the firm estimates.
The data suggest UK card-not-present fraud declined to £122 million during the first half of this year, down 9% from £134 million during the first half of 2009, Retail Decisions says.
Card-not-present fraud is declining in the UK as UK-based merchants adopt “increasingly sophisticated” technology to thwart online card fraud, Carl Clump, Retail Decisions CEO, said in a statement. Fraud also is declining as more UK consumers become aware of “phishing” and other common tricks fraudsters use to get card details to commit online fraud, the firm says.
Overall card-not-present fraud levels may be declining, but the average value of such bogus transactions is on the rise, the firm warns.
The average transaction value for a fraudulent card-not-present transaction during the first six months of this year was £76, up 24.6% from £61 a year earlier, Clump says.
Card-not-present fraud in the U.S. also could rise more than 30% this year, according to Retail Decisions, which did not provide specific figures for total U.S. card-not-present fraud or the average amount of fraudulent transactions there.
Criminals “are persistent and continually develop new methods to defraud merchants,” the firm notes.
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