Fraud losses on UK cards totalled £450.4 million in 2013, a 16 per cent rise on the total in 2012 of £388.3 million. This figure is still down 26 per cent since fraud was at its peak in 2008. At the same time, total spending on all debit and credit cards reached £532 billion in 2013, a rise of 6.1 per cent on 2012, with 10.9 billion transactions made in the year1.

Overall, card fraud losses as a proportion of the value of purchases on our cards have increased only slightly – from 7.1p for every £100 spent in 2012 to 7.4p in 2013 (in 2008 it was 12.4p for every £100). The total number of all transactions rose by over half a billion between 2012 and 2013. Other figures:

• Losses on remote card purchases (those made online, over the telephone or by mail order) increased by 22 per cent to £301.1 million in 2013, from £246.0 million in 2012.
• Online fraud against UK retailers totalled an estimated £105.5 million in 2013, a rise of 4 per cent on the previous year. However, there has been a substantial increase in fraud against on-line retailers based overseas, rising 48 per cent to an estimated £57.8 million.

Impact of enhanced security 
Enhanced card security features, such as Chip & PIN, as well as advanced real-time fraud screening techniques employed by banks and established internet retailers, have forced criminals to change tactics. As well as tricking customers into handing over personal and financial details (including cards and PINs), for example, over the telephone while posing as officers from the bank or the police, fraudsters are also increasingly using digital attacks, such as malware and data hacks, to compromise card details.

Malware is malicious software which is unknowingly downloaded onto a computer and which then enables fraudsters to steal personal or financial information or perform unauthorised actions on the device. It is believed criminals are using these stolen details to commit fraud by targeting those online retailers which have not yet adopted security measures put in place by more established firms.

The rise in 'vishing' fraud and malware contributed to a three percent increase in online banking fraud, which ticked up to £40.9 million from £39.6 million in 2012. FFA UK says fraudsters are increasingly targeting business customers rather than personal accounts due to the prospect of a potentially higher return.

Detective chief inspector Perry Stokes, head of the Dedicated Cheque and Plastic Crime Unit, says: "Whether in the real world or online, these latest fraud figures show just how important it is for consumers and businesses to know how to protect themselves against fraud."

Install security software
In order to help tackle this trend, experts and the police are urging consumers and online businesses to install security software, often freely available from a customer’s own bank. To prevent stolen card details being used to make purchases online, retailers are being advised to take steps to improve their security, including use of the online protection (including American Express’ ‘Safe Key’, ‘Verified by Visa’ and MasterCard’s ‘SecureCode’).

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CTMfile take: These figures show that one of the biggest potential threats to the company from fraud by payment cards could be the use of cards on the employees’ own laptops/tablets. How secure are these devices? Could the BYOD policy be the trojan horse for hackers?