The Problem With Credit Cards...

Published: Tuesday, February 19, 2008 Online-Casinos.com

THE PROBLEM WITH CREDIT CARDS....

Card-not-present fraud grew last year


The growth of "card-not-present" fraud is causing growing concern in the UK online gambling sector following a report of the credit card industry trade association APACS, which reveals that firms in the sector, including the National Lottery, lost 61 percent more to CNP scams in the first half of 2007 than in the same period in 2006. Some GBP 12.7 million in losses were incurred as a result.

By comparison, in the same half year period travel firms experienced a 50 percent increase in fraud hits, and telecom firms just on 33 percent at GBP 11.6 million in losses, mainly from mobile phone frauds. Escaping relatively unscathed at the lower end of those prejudiced were mail order and electrical goods retailers, which saw CNP fraud increase only 6 percent and 3 percent respectively at GBP 6.7 million and GBP 6.3 million.

Seen in context, online retailers turned over GBP 44 billion last year compared with the estimated GBP 1 billion of the UK online gambling industry.

Apparently fraudsters, deterred by the newly implemented chip and pin technology in the UK have started committing their cards from abroad from countries that have not yet fully introduced this extra level of protection. Incidences of fraud abroad doubled to over GNB 108 million.