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It
was revealed today that card fraud increased by 20 per cent in 2004 to
£505m with cardholder-not-present (CNP) fraud - where goods are
purchased over the phone, via mail-order, or over the internet -
increasing by 24 per cent to £150m.
Reacting to the figures, the FSB is
arguing that credit card companies, rather than retailers, should pick
up the bill for CNP fraud.
FSB Policy Chairman John Walker said:
"Cardholder-not-present crime is a
particular concern to businesses, not just because it is on the
increase, but also because in most cases the business owner rather than
the credit card company is liable in the event of fraud.
"Although chip and PIN will help
combat the use of stolen and counterfeit cards, at present it will not
tackle CNP fraud. In fact there is a real danger that as chip and PIN
takes off, fraudsters will use the internet and telephone instead.
"Although it is not the case for
all internet transactions, if a mail-order or telephone transaction
turns out to be fraudulent, it is the business that pays, even if the
transaction has been correctly authorised.
"Many small businesses are not
aware that when a CNP transaction takes place, credit card
authorisation is not a payment guarantee, and the FSB is working with
the banking industry to improve business awareness. We look forward to
working with the industry to develop a solution where the issuing bank
is liable in the event of fraud for all correctly authorised mail-order
and telephone transactions."
{mos_sb_discuss:4} |
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