Chip and Pin technology does deter fraudsters

According to recent data relating to credit card fraud in 2006 compared to 2005, Chip and Pin technology does seem to be deterring fraudsters.

It seems that fraudsters that focus on credit and debt card fraud are turning their attentions away from retailers that have the use of chip and pin technology, and are instead focusing on card not present car fraud, which means remote transactions such as those carried out online or on the phone, where the card does not actually have to present in order for a transaction to go through.

Recent data revealed that the level of online card related fraud jumped up in 2006 compared to 2005, rising by around sixteen percent in the space of a year. On the other hand, credit and debit card fraud carries out on a face to face basis at a retailers actually fell by a whopping forty seven percent, indicative of the levels by which chip and pin technology is deterring potential fraudsters.

However, although this is good news for those that like to shop at bricks and mortar stores, it spells trouble for those that prefer to shop online, as more and more fraudsters are turning to online card fraud as a result of the increased security that comes with chip and pin.

Experts have been advising consumers to be very careful about how they use their credit cards and debt cards in card not present transactions, as they could otherwise put themselves at risk of becoming victims of online card fraud.

Consumers should never provide their card details in response to an email, even if it appears to be from a bank, and should never give out card details in a phone call if the call was not self initiated. Consumers should also ensure that when using their cards online the site that they shop through is a secure and reputable one.

Tom Smith
2nd April 2007