Sharp fall in overseas card fraud

Fraud committed overseas on UK credit and debit cards has fallen to a five year low, figures released today show.

According to Apacs, the industry body for card issuers, total fraud committed abroad on UK issued cards in 2004 was worth £92.5m.

This was down from a high of £138.4m in 2001, and was the lowest figure since 1999, despite a 93% rise in the use of UK cards overseas over the same five-year period.

The figure for overseas fraud represented 18% of the total fraud carried out on UK cards in 2004, which reached almost £505m, an increase of 20% on 2003's figure.

Apacs attributed the reduction in overseas fraud to improved detection systems that enable card companies to spot unusual spending patterns most often associated with the fraudulent use of cards.

In addition, the Dedicated Cheque and Plastic Crime Unit (DCPCU) - a specialist police team sponsored by the banking industry - has successfully cracked several international card counterfeiting rings.

The organisation was set up in April 2002, initially on a two-year pilot scheme, but has been so successful that it continues to operate.

Apacs has drawn up a list of hotspots where the bulk of card crime occurred last year. Just under half (48%) of fraud took place in just three countries.

Some £16.m of fraud took place in the US, representing 18% of the overseas total, France accounted for £15.8m, 17% of the total, and Spain, at £12.3m, made up 13% of the total.

The US is the only country not to have announced plans to launch a chip and pin scheme to crackdown on card crime.

Apacs warned holidaymakers not to become complacent about using their cards abroad, despite the fall.

"Cardholders should remember to follow a few simple rules to make sure they're protected while they're abroad," said Sandra Quinn, communication director at Apacs.

"Simple things like making sure your cards never leave your sight and remembering to dispose of receipts carefully can make all the difference."

However, overseas fraud is not just a danger to those paying on plastic while abroad - credit card details can be stolen in the UK and passed on to criminals acting other countries.

"It's a situation where your card details go on holiday but you don't," said Mark Bowerman, a spokesman for Apacs. "People need to be careful wherever they are and whenever they pay with their card."

The fraud detection system designed to spot unusual payments has led to problems in the past as holidaymakers have encountered problems when attempting to pay by card.

Mr Bowerman said the system would not block a payment but flag it up as unusual, which may be taken by an overseas trader as a reason to decline a card payment. He suggested customers should alert their card issuer before they travel.

He added that those who encounter problems when overseas should call their card company and notify it that they are trying to use their card in another country.

A guide to using your cards safely on holiday is available on www.apacs.org.uk.