Which? calls for tighter regulations to reduce online credit card fraud
The consumer watchdog group has called for stricter banking regulations in order to try and reduce the level of online credit card fraud that has been affecting consumers in the UK.
 Online credit card fraud has increased quite dramatically over recent years, and Which? has called for tighter regulations from banks in order to protect consumers that use their credit cards online, enabling them to enjoy the benefits of tighter security and reduce the chances of them becoming victims of card fraud.
In the first six months of 2006, credit card fraud as a whole actually fell by five percent, based on figures released from APACS. However, during the same period '‘card not present' fraud – in other words, remote fraudulent transactions – actually rose by five percent. Internet fraud has become the largest single method of card fraud, representing nearly 50% of plastic card based fraudulent activity.
One major concern is the level of protection provided by card issuers and banks for those that become the victims of online card fraud. In cases of offline card fraud consumers are usually protected, a only have to pay a fee of around fifty pounds in most cases, and even this is waived by most card issuers and banks. However, protection for those that become victims of card fraud online, for example through phishing scams, is far lower.
The Editor of Which? Money stated: "People probably aren't aware that they're not guaranteed to have their losses refunded if they're a victim of online fraud. If you receive an email that seems to be from your bank, don't reply to it -- give your bank a call instead."
He also added that identity theft cover was not a solution, and in most cases was likely to provide poor value for money.
Tom Smith
3rd March 2007
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