Atlantic Financial Management

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Credit card fraud falls but web scams rise

10/03/2010

Credit card fraud declined sharply in the last year, but online banking scams have continued to increase.

Growing numbers of people are being driven into financial difficulties through phishing scams and other kinds of online banking fraud.

However, overall fraud on credit cards dropped by 28 per cent in 2009, the first drop since 2006 – and the industry is putting that down to increased security measures.

In turn, the criminals' methods for accessing people's bank accounts have become more and more sophisticated, through malware that targets customers' domestic PCs rather than the well-protected bank systems.

Malware can be particularly dangerous for vulnerable consumers, especially with the rise in social networking sites and music downloads. Unsuspecting users download software that allows fraudsters to track the keystrokes they make on their computer.

Atlantic director Vance Parsons says: "Fraud losses on UK credit and debit cards still totalled £440 million in 2009, which remains a concern."

He says they're concerned that vulnerable people potentially already with debt problems may fall victim to Internet scams, which they have seen with bogus virus checking scams and other tricks to either directly obtain funds or obtain personal details for future use.

Parsons says they encourage people to "buy on the Internet to get the best deals and reduce costs, but you have to be vigilant, use trusted sites and regularly check for security threats." ADNFCR-2613-ID-19660991-ADNFCR