ING first to announce SEPA strategy for cards/terminals - all brands allowed

Total UK payment card fraud losses increased by 25 percent in 2007, reaching nearly EUR 683 million (GBP 535.2 million), according to a report. This is a consequence of a 77 percent rise in fraud on UK cards abroad.

Fraud on foreign soil is the main cause for 39 percent of total UK card fraud losses.

Overseas fraud targeting UK-issued cards is particularly frequent in countries which have not upgraded to EMV chip-and-PIN yet. Overseas fraud on UK cards reached EUR 149.3 million in 2006, growing to EUR 264.8 million in 2007.

The study reveals that chip-and-PIN has had a “hugely positive effect” on card fraud on UK territory ever since the introduction of the security technology in 2005. During a chip-and-PIN transaction, the cardholder enters a PIN at the point-of-sale which is being verified against the PIN stored on the card’s EMV chip.Losses on face-to-face transactions on the UK high street declined from EUR 279.1 million in 2004 to EUR 93.1 million in 2007 because of chip-and-PIN.

Fraud involving lost and stolen cards as well as mail non-receipt card fraud have diminished due to the same reason. Lost and stolen card fraud amounted to EUR 71.7 million in 2007, while mail non-receipt card fraud rose to EUR 13 million. In 2007 online banking fraud losses dropped by 33 percent to EUR 28.8 million. Data was published by UK payments association APACS.