Credit card fraud ‘leads to higher debts’

Although the introduction of Chip and Pin has made life more difficult for fraudsters in Britain, overall card fraud losses have risen, new research has found.

Figures released by Apacs, the UK payments association, show that total losses caused by card fraud increased 14 per cent in the first six months of the year.

This could lead to higher debts for victims whose identities are stolen.

Apacs stated that most of the problem stems from countries that have not yet introduced the Chip and Pin system, with a 190 per cent increase in losses abroad over the past three years.

Director of communications Sandra Quinn remarked: “Criminals continue to target those areas where we do not currently have the security benefits.”

However, Chip and Pin has contributed to some progress in the UK over the last three years, as fraud on lost or stolen cards fell 38 per cent in this period.

Meanwhile, credit card debt is set to rise as Christmas approaches, according to Moneyfacts.

By Jamie Price