Identity theft soars

Card fraud involving identity theft rose by 45% last year and, according to figures out this week, scams at cash machines went up by more than a third despite the first fall in overall card crime in eight years.

Identity theft, where criminals create false accounts in someone's name, soared to a record £29.7m in 2003, according to the Association of Payment and Clearing Services (Apacs).

The figures showed that the largest chunk of card crime was down to "cardholder not present" (CNP) fraud, which shot up 6% to £116.4m.

CNP fraud involves the unauthorised use of stolen card details in payments by telephone, mail order and the internet. The fraudsters' favourite tactics include stealing details from card statements discarded in bins and "skimming" - where the information stored on the magnetic strip of a card is duplicated and copied to a replica card.

Total card fraud fell by 5% to £402.4m in 2003, but the slight decline masks a threefold increase since 1998.

Other research out this week found that more than half of consumers are worried about overspending on their credit card and losing track of how much they owe.

Around 44% of people are worried they will use their credit card to buy something they cannot afford, according to financial services firm CPP Group.

However the research also found that only a quarter of people are worried about credit and debit card fraud, despite the fact that it has risen substantially over the past decade.

The card industry and police are hoping the introduction of new "Chip and Pin" technology, where an identification number replaces signatures, will tackle CNP in particular. However Apacs conceded this week that there was still more to be done but insisted: "Cards are still safer than cash."