We're in the Top 10 nations when it comes to credit card fraud
Wednesday July 19 2006
CREDIT card fraud in Ireland is now "a very serious problem", according to UK giant Barclaycard.
Because of its popularity with UK holidaymakers and business visitors, Ireland is in the Top 10 of fraud hotspots for the credit card company's customers, of whom there are 11.2m in the UK and a further 4.3m in other countries around the world.
"We cannot release the actual figures because that is commercially sensitive information but it is a very serious problem," said Barclaycard spokesman Andrew Bond.
The worst countries for credit card fraud are Turkey, France, Spain and the UK.
Together these countries account for 56pc of all fraudulent foreign transactions experienced by the firm's customers, according to the company's records.
Ireland is included in a group that includes Italy, China, Thailand, India and the Netherlands.
"We are mainly talking about lost and stolen cards in Ireland and we are seeing a lot of skimming and shoulder surfing," Mr Bond said.
"There is a lot of activity by organised crime gangs, skimming devices and fraud in restaurants, with people maybe being pressurised into supplying card details to the gangs," he said.
"Chip and PIN" fraud has seen a dramatic drop of up to 50pc in card-skimming activity in Ireland in the first few months of this year, according to the Irish Payment Services Organisation (IPSO).
In the credit card industry across Europe, card-skimming fraud losses dropped by 43pc to €44m, according to figures published in the business press by the ATM Industry Association.
But shoulder surfers steal not just the card or its details but also the PIN, Mr Bond said.
In the UK, APACS, the body responsible for clearing cheques and other payments, said "chip and PIN" fraud has dropped by up to 50pc.
UK card fraud losses fell by €95m, or 13pc, from €737,936 in 2004 to €642,412 in 2005.
This reduction is mostly due to a decrease in counterfeit (cloned) and lost/stolen card fraud.
But it is being replaced by "card-not-present" fraud, which rose by €43.37m (21pc since 2004), an increase seen all over Europe, according to the ATM Industry Association.
"Card not present" fraud, whereby the fraudster uses credit card details on the internet or by phone, leaves retailers more vulnerable to loss.
Martin Warwick, head of Barclaycard's Fraud Operations, said Ireland's popularity with British visitors inevitably meant more cards being lost or stolen.
"However, I'd remind cardholders that their card is still safer than carrying cash, as cardholders are not held liable for any losses from fraudulent activity," he said.
- Bernard Purcell
