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Report finds rise in overseas card frauds

The U.K. payments association Apacs has revealed that overseas card-based frauds have increased by a phenomenal 126% compared to a fall in domestic card frauds (by 11%). The figures are attributed to the introduction of chip and PIN-based cards, which are harder to fake than magnetic strip-based cards.

The U.K. payments association Apacs has revealed that overseas card-based frauds have increased by a phenomenal 126% compared to a fall in domestic card frauds (by 11%). The figures are attributed to the introduction of chip and PIN-based cards, which are harder to fake than magnetic strip-based cards.

A quote from the article at Techworld:

"...as more countries rollout this secure technology, the opportunities for criminals to use fake magnetic stripe cards overseas will decrease," said Apacs. The European banking industry has set itself the target of completing its chip card rollout by 2010.

The report also found that online, phone, and mail order frauds are on the rise.

A quote from the article at VNUnet:

Losses between January and June last year were £22.4m, compared with £7.5m this year. The drop is down to the efforts of the banks, said Apacs director of communications Sandra Quinn.

In fact, overseas card losses have shadowed the domestic fraud decrease (Register). The increase of online shopping implies that institutions have to adopt additional security measures, such as extra security devices (BBC), if frauds are thoroughly checked.

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