Money

Money

Card fraud has dramatically increased in London over the last year with more than two million, over one in three, Londoners now having fallen victim.

According to life assistance company CPP’s annual Card Fraud Index, which identifies fraud hotspots across the UK, card fraud in the Capital has increased by 10% in the last year, with 38% of Londoners now having been affected. This means London tops the tables for the worst card fraud in the country for the second year running.

Across the UK, card fraud has risen by five per cent with one in four Brits, over 12 million people (2), having been a victim last year – a reflection of the desperate measures fraudsters will resort to during the current climate.

While London took the top spot for card fraud, rounding out the top five was Cardiff (34%), Glasgow (31%), Manchester (29%) and Brighton (27%) – the coastal city saw an astonishing increase in card fraud of 15% in 2008.

Online fraud has been an increasing problem, affecting 39% of victims, while card cloning from a cash point or chip and pin device accounted for a fifth (21%) of fraud cases. Out of all cards that are physically lost and stolen, one in ten are also being used fraudulently.

The sums of money involved in these fraud cases are substantial. The average sum fraudulently transacted is over £650, with one in 20 victims (six per cent) reporting losses of over £2,000. Worryingly, 42% of card fraud victims did not know about these transactions and only found out they had been defrauded when alerted by their bank. This is up six per cent from last year.

Kerry D’Souza, card fraud expert from CPP, says:

“The dramatic increase in card fraud shows no sign of abating which isn’t surprising given the desperate measures some people will resort to during the recession. Fraudsters are becoming increasingly sophisticated, especially when it comes to online transactions which are a particular cause for concern.

“Cardholders need to remain vigilant with their cards and take the necessary steps to protect themselves – from checking statements more frequently to keeping sight of their card when paying for transactions. It might seem like simple steps but they will go a long way in preventing fraud.”

The life assistance company CPP is urging consumers to remain vigilant in the fight against fraud. While almost a fifth of cardholders (17%) say they are more worried about card fraud compared to last year – and 18% of those surveyed say they will even resort to using their cards less – only a third say they will check their bank statements more frequently, meaning that many small transactions could slip through undetected.

Top tips from CPP for keeping your cards safe in 2009:

· Sign up to Verified by Visa and MasterCard SecureCode as it will largely put a stop to lots of unauthorised online spending

· Don’t let staff take your debit/credit card out of sight, even for a second

· Check your receipts against your statements when you get home

· Don’t let someone else take money out on your behalf

· Don’t carry multiple debit/credit cards in a wallet

· Don’t carry debit/credit cards loose in a bag or pocket