UK Card-fraud Losses Down 23% during First Half of 2009

By Garry HJ | October 12th, 2009 | Category: Banking & Finance, PayPal | No Comments »

Cash or credit? Online payments news Newly released data shows that PayPal is up to five times more fraud-prone than regular credit cards, based on statements made by eBay to the Australian ACCC last year.

Financial Fraud Action UK, the voice of the industry in the UK for financial fraud matters, (previously known as APACS) has published the latest payment industry fraud losses for the first half of 2009, in conjunction with The UK Cards Association and the Cheque and Credit Clearing Company.

By fraud category,the results were -

Card not present – £134m (down 18% against first half 2008)
Counterfeit cards – £46.3m (down 48%)
Lost or stolen cards – £25.1m (down 6%)
Card ID theft – £23.9m (up 23%)
Card lost in post – £3.5m (down 33%)
Total – £232.8m (down 23%)

The fraud to turnover rate on debit and credit cards amounted to 0.1 per cent in the first half of the year – reflecting the fact that around a tenth of a penny is lost to fraud in every £1 spent on cards.

This compares extremely well against the figures that eBay presented when fighting the case for a PayPal-only eBay Australia last year – they said that fraud through the PayPal system was running at “only” 0.5%. For e-tailers, that stacks up as PayPal being five times riskier to accept compared to regular merchant services.

Original story : News Agencies
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