Latest figures from APACS, the UK payments association, show that
whilst losses from card-not-present fraud continue to increase
year on year, the fraud-to-turnover ratio has in fact decreased,
from 0.7 per cent in 2004 to 0.5 per cent in 2006.
According to APACS, the number of adults shopping online has increased by 157 per cent in the past five years, from 11 million in 2001 to more than 28 million last year. By comparison, online, phone and mail order fraud rose 122 per cent in the same period.
Meanwhile, research from Experian has revealed that London remains the identity fraud capital of the UK. There has been a 68 per cent year-on-year increase in identity fraud activity, with Kensington – where residents are almost five times more likely to fall, victim, than the UK average – now the highest-risk area. Residents around Clapham Junction are also among those most at risk.
On average, Experian found, each case of fraud costs the financial organisation involved £680. Mail order companies were hardest hit in terms of fraud volumes, accounting for 68 per cent of all new cases.