Card Fraud Facts 2001

8/11/2019 Card Fraud Facts 2001

1/40

the fact

Card fraud

2001the facts 2001


2/40

Introduction .................................................................................. 1

Card fraud the facts .................................................................. 2

Shopping on the Internet.............................................................. 4

Types of fraud .............................................................................. 8

Preventing fraudChip cards ................................................................................ 13

Identifying cardholders ............................................................ 15

Phone, mail order and Internet transactions .......................... 16

Other initiatives........................................................................ 17

Advice for cardholders .............................................................. 20

Card facts and figures ................................................................ 23

The major players ...................................................................... 25

Useful contacts .......................................................................... 26

Publications.............................................................................. 33

Glossary ...................................................................................... 34

Contents


3/40

Introduction

1

This booklet has been prepared by the Association for Payment

Clearing Services (APACS) to provide an overview of plastic card

fraud and its prevention.

Card fraud cost the UK 292.6 million in 2000 an increase of55 per cent on 1999s figure of 188.4 million. Some types offraud are growing rapidly, especially counterfeit which grew by104 per cent last year, and fraud committed without the use of acard by using the telephone, mail order or Internet which roseby 94 per cent.

To combat card crime, two things need to be established at thetime of the transaction that the card is the genuine item andthat the person using it is the true owner.

The introduction of highly-secure chip cards in the UK meetsthe first part of the requirement by confirming that a card is nota counterfeit. Chip cards also open up new possibilities for tacklingthe second requirement for fraud prevention identifying thecardholder.

A chip card used with a PIN (personal identification number) isthe preferred option of both retail and banking communities to

reduce card fraud but before a decision can be made the twoindustries are working towards resolving a number of issues.

Against a backdrop of shared concern between the banks,retailers, police and the Home Office, card fraud prevention effortsalso continue on a range of short-term initiatives before the longerterm benefits associated with chip cards can be realised.


4/40

2

Card fraudthe facts

280

260

240

300

220

200

180160

140

120

100

80

60

40

20

0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Plastic card fraud losses 1991-2000

Cheque card Debit card Credit/charge card

m

The UK has seen card fraud losses rise steadily in recent years, ashave most countries around the world. In 2000, card fraud cost theUK 292.6 million. To put the fraud increases in context, it shouldbe remembered that card usage and the numbers of cards issuedcontinues to surge in the UK. As a result, fraud losses againstturnover at 0.145 per cent in 2000 are still less than half the

1991 peak level of 0.33 per cent.

The following graph shows the pattern in total fraud losses over

the last decade broken down by card type.

The pattern of fraud shows a steep reduction in losses from the early to mid-1990s, asa result of a range of partnership prevention initiatives, and then acceleration to 2000 ascriminals adapted their methods of attack and large growths were seen in counterfeit andcard-not-present fraud.


5/40

3

The following pie charts illustrate how the trends for card fraud

have changed since 1997, detailing the amounts lost to specific

types of fraud.

The pie charts below show that the proportion of fraud on lost or stolen cards is decreasingand, to a lesser extent, this also applies to mail non-receipt fraud. Counterfeit and card-not-present fraud are increasing steeply. (m).

Lost/stolen Mail non-receipt

Counterfeitcard

Applicationfraud

Fraudulentpossession ofcard details

Other

Cost 1997: 122 million Cost 1998: 135 million

Cost 1999: 188.3 million

66.2

12.5

20.3

11.9

10

1.2

79.7

14.650.3

11.4

29.3

3

Cost 2000: 292.6 million

98.9

17.3102.8

10.2

56.8

6.5

65.8

12

26.8

14.5

13.6

2.3


6/40

4

Whether making a transaction at the point-of-sale, through thephone, mail order or Internet, card security partly relies uponcardholder vigilance. If cardholders follow some simple guidelineswhen making Internet transactions, it is no different from payingfor purchases by phone or mail order.

Most Internet fraud involves using card details fraudulentlyobtained in the real world to make card-not-present transactionsin the virtual world. Currently card-not-present fraud on Internettransactions is low, accounting for two to three per cent of all cardfraud losses in the UK. From April 2001, the UK banking industry isrolling out a cardholder address and card security code checkingsystem to make card-not-present transactions including thoseover the Internet more secure (see page 16).

Shopping on the Internet


7/40

5

Security of cardholder information

Although the incidence of hackers stealing cardholder data fromwebsites is very low compared to other ways criminals access carddetails, there have recently been some incidents made public bythe media. To protect data, the international card schemes havestringent criteria for how retailer websites protect and store card

information.

To protect against the low possibility that a hacker will interceptcardholder data in transit through the Internet, certifiedorganisations encrypt data as it travels.

As e-commerce develops, the banks continue working alongsideretailers and the international card schemes to add furthersecurity features and develop new banking services to help thisform of trade.

In the long-term, however, it is chip cards (see page 13) that willplay a pivotal role in providing the base for secure e-commerce.


8/40

6

Ten-point checklist for Internet shopping

The vast majority of businesses operating on the Internet are

honest and genuine and cardholders need only follow the

guidelines given below to make e-commerce no more risky than

buying by mail order or over the phone.

APACS recommends cardholders use the following ten-point

checklist when shopping on the Internet.

1 Make sure your browser is set to the highest level of security

notification and monitoring. The safety options are not always

activated by default when you install your computer.

2 Two of the most popular browsers are Microsoft Internet Explorer

and Netscape Navigator. Check that you are using a recent version

- you can usually download the latest version from thesebrowsers' websites. If you have a different browser or use on-line

services such as AOL or Compuserve, contact your ISP or software

supplier to find out how to activate their security features.

3 Keep a record of the retailers contact details, including a street

address and a non-mobile phone number. Beware if these details

are not available on the website. Do not rely on the e-mail

address alone.4 Click on the security icon to see if the retailer has an encryption

certificate. This should explain the type and extent of security and

encryption it uses. Only use companies that have an encryption

certificate and use secure transaction technology.

Shopping on the Internet (cont)


9/40

7

5 If you have any queries or concerns, telephone the company

before giving them your card details to reassure yourself that

it is legitimate.

6 Print out your order and consider keeping copies of the retailers

terms and conditions and returns policy. Be aware that there may

well be additional charges such as postage and VAT, particularly if

you are purchasing goods from traders abroad. When buying from

overseas always err on the side of caution and remember that it

may be difficult to seek redress if problems arise.

7 Check statements from your bank or card issuer carefully as soon

as you receive them. Raise any discrepancies with the retailer

concerned in the first instance. If you find any transaction on your

statement that you are certain you did not make, contact your card

issuer immediately.

8 Ensure that you are fully aware of any payment commitments you

are entering into, including whether you are instructing a single

payment or a series of payments.

9 Never disclose your cards PIN to anyone, including people

claiming to be from your bank or the police, and never write

it down or send it over the Internet.10 If you have any doubts about giving your card details, find another

method of payment.


10/40

8

Criminals use various methods of card fraud. Two thirds of fraudon UK cards happens in the UK and the rest occurs overseas.Most of the fraud which takes place abroad is in the United States(22 per cent of losses on UK cards used abroad), Spain (16 percent) and France (15 per cent). Fraud committed abroad on UKcards increased by 79 per cent in 2000 on the previous years

figure, costing 97.2 million.

Two major factors lie behind the increase. UK fraud preventioninitiatives have driven criminals abroad; and criminals areincreasingly moving quickly and easily from country to country.APACS and its member banks and building societies arecontinuing to work closely with Visa and Europay/MasterCardon cross-border fraud initiatives.

Descriptions of the types of fraud used by card criminals follow:

Types of fraud


11/40

9

1 Counterfeit fraud

Counterfeit card fraud cost almost 102.8 million in 2000, anincrease of 104 per cent on losses of 50.3 million in 1999.

A counterfeit card is either one which has been printed, embossedor encoded without permission from the issuer, or one which hasbeen validly issued then altered or re-coded.

Most cases of counterfeit fraud involve skimming, a processwhere the genuine data in the magnetic stripe on one card iselectronically copied onto another, without the first cardholdersknowledge. In 1996 skimming accounted for 20 per cent ofcounterfeit fraud to amount to almost 3 million in losses. In 2000card criminals are increasingly organised and as a result theproportion has grown to over 72 per cent to cost 74 million.

Skimming normally occurs at retail outlets particularlyrestaurants and petrol stations where a corrupt employee copiesa customers card details before handing it back, and then sellsthe information on higher up the criminal ladder where counterfeitcopies are made. Often the cardholder is unaware of the frauduntil a statement arrives showing purchases they did not make.

It is vital that cardholders check their statements for anyunfamiliar transactions


12/40

10

2 Fraud on phone, mail order or Internet transactions

Card-not-present fraud occurs when neither the card nor itsholder is present at the point-of-sale, as happens in telephone,fax, mail order or Internet transactions. Most of this fraud occursthrough telephone or mail order, and less frequently through theInternet.

This crime involves using fraudulently obtained card details tomake a purchase. Usually the details are copied down without thecardholders knowledge or taken from discarded receipts. Lesscommonly, card details have been sourced from programmeswhich generate account numbers that have been set up on overseasInternet sites for short periods of time. As with counterfeit fraud,the legitimate cardholder may not be aware of the fraud until a

statement is received.

A new address and card security code checking system to fightcard-not-present fraud is being rolled out in the UK from April 2001.

Do not discard receipts carelessly and check statements for

any unfamiliar transactions

Types of fraud (cont)


13/40

11

3 Lost or stolen cards

Fraud on lost or stolen cards cost 98.9 million in 2000, anincrease of 24 per cent on 1999s losses of 79.7 million. Mostfraud on lost or stolen cards takes place at retail outlets beforethe cardholder has reported the loss. Card issuers are continuingto address this by using intelligent fraud detection systems.

A hot card file system is used to distribute data about lost orstolen cards to 80,000 retailers in the UK to alert them to cardsreported missing.

It is vital that cardholders report missing cards to their issuing

bank immediately so a block can be put on the card

4 Mail non-receipt fraud

The number of plastic cards stolen in the post peaked in 1991when it cost the industry 33 million and represented just under20 per cent of total fraud losses. At this point the banking industryformed an ongoing partnership with the Royal Mail to monitor andcontrol card distribution and this has driven the cost of mail non-receipt fraud down to 17.3 million in 2000.


14/40

12

5 Application fraud

Application fraud using stolen or fake ID or other details to open acard account was reduced by 11 per cent from 1999 to 2000, whenit cost 10.2 million. The success in reducing this type of fraud isdue to the use of CIFAS The UK Fraud Avoidance System and otherdetection systems which help spot fraudulent applications.

6 ATM fraud

The majority of cases of ATM fraud occur when the legitimatecardholder has written down their PIN and kept it with their cardin a purse or wallet which is stolen.

Some cases also occur through shoulder surfing wherecriminals look over a cash machine users shoulder to watch thementer their PIN, then steal the card using distraction techniques orpickpocketing. ATM fraud cost the industry 17.9 million in 2000,6 per cent of total fraud losses.

Never write down your PIN and be alert when using

cash machines

Types of fraud (cont)


15/40

13

As societys reliance on cards becomes more widespread, thelosses from card fraud grow too. So while the rate of fraud growthas a percentage of turnover remains low less than half the 1991peak level of 0.33 per cent it is vital that fraud preventionmethods are continually developed and reviewed as criminals tryto evade them.

Chip cards

Greatly increased security for payment cardsThe banking industrys 300 million roll-out of smart chip cardsto fight card crime has become more crucial than ever with lossesat an all time high. The new technology began to be rolled out inthe spring of 1999, with each card issuer distributing the newcards in accordance with its own business plan, typically as old

cards expire.A chip card can be recognised by the gold coloured contact plate onthe front of the card, which contains a microchip with highly-securememory and processing capabilities. The cardholder can use themin exactly the same way as existing credit, debit and ATM cards.

Chip cards will still have a magnetic stripe on the back for a numberof years to ensure that cards with old and new technologies can

continue to be used throughout the UK as well as abroad.

The personal data held in a chip card is no different from that heldon the existing magnetic stripe card and covers such things ascardholder name, card number, expiry date etc. The information issimply held more securely to safeguard against counterfeit.

Preventing fraud


16/40

14

International useTo ensure chip cards are recognised and accepted in all countrieswhere cards payments are made, countries around the world arebuilding them to an international specification set by theinternational card schemes Europay, MasterCard and Visa (EMV).

The UK is at the forefront of an international roll-out of EMV-compliant chip technology. By the end of 2002 most of thebank-owned infrastructure in the UK will be processing chip cardsand it is hoped that the upgrade of retailer-owned equipment willalso be progressed rapidly. Upgrading systems quickly is vital tofight the steeply-rising rate of counterfeit fraud.

Benefits of chip cardsInitially, the major advantage is increased security againstcounterfeit fraud: a rapidly growing crime in the UK and aroundthe world. Chip technology uses highly sophisticated processingto identify genuine cards and make counterfeiting much moredifficult and hugely expensive for the criminal.

The new cards have the ability to support add on services such asretailer loyalty schemes or electronic purse. Chip cards also havethe potential to be used with chip readers attached to personal

computers, mobile phones or digital TVs, making on-linetransactions of the future even more secure.

With the increase in security that chip cards bring, the potentialexists for retailers to expand the use of unattended terminals inpetrol stations, telephone kiosks, car parks and self-scanning atsupermarkets.

Preventing fraud (cont)


17/40

15

Identifying cardholders

A new way of identifying cardholders at the sales counter?Chip technology provides a strong foundation for adopting a bettermethod of identifying cardholders at the point-of-sale. Using thistechnology, the banking and retail industries are assessing the useof PINs (personal identification numbers).

Using an improved method of identifying the cardholder combinedwith the chips ability to verify the card is authentic woulddrastically improve security and significantly reduce most typesof fraud.

If PINs are introduced to the retail point-of-sale environment,it will impact the UKs 42 million cardholders and necessitate achange in their behaviour at some 735,000 retail terminals. Themassive scale of such a project emphasises the need for thebanking industry, card schemes and retailers to work inpartnership to ensure success.

Why not photo cards?Putting identification photos on cards has been considered as anadditional security method, but this would only provide costly shortto medium-term relief. The banking industry aims to shift the

responsibility of identifying the cardholder away from point-of-salestaff by relying on technology-based methods to help prevent fraud.

What about identification methods like iris scanning?The memory capacity of the chip card makes it possible to retainbiometric details for identifying the cardholder. Finger and irisscanning and voice recognition have all been promoted aspossibilities, however such technology is not sufficiently reliable

or cost effective to meet the requirements of the UK card industrywithin the next ten years.


18/40


19/40

17

Knowledge-based systems

Checking for unusual spending patterns to spot fraud beforeit is reportedBanks, building societies and card schemes are continuallyincreasing the sophistication of intelligent detection systemswhich can identify fraudulent transactions before a cards loss is

reported. The majority of card issuers already use knowledge-based systems and have had considerable success in identifyingspending patterns which differ from the cardholders normalroutine.

CIFAS the UK Fraud Avoidance System

Sharing information to stop fraudCIFAS is an information exchange that helps its wide range of

member organisations identify different types of fraud, includingthat relating to false applications for plastic cards.

Lower floor limits

Online checks to ensure cards have not been reported lostor stolenMost retail outlets have a floor limit an amount above which theywill seek authorisation from the card issuer before completing a

transaction. Retailers have been encouraged to introduce lowerfloor limits since the early 1990s and the number of authorisedtransactions has increased from around 10 per cent to around65 per cent.

These days the majority of fraud is authorised because criminalsare using cards fraudulently before the owner reports it. Thishighlights the importance of cardholders reporting lost or stolen

cards immediately so they can be blocked, and of checkingstatements regularly to look for any unrecognised transactionswhich could indicate card-not-present or counterfeit fraud.


20/40

18

The Industry Hot Card File (IHCF)

Checking every card transaction for lost and stolen cardsRetailers subscribe to this electronic file which distributes data onlost or stolen cards. When a card is swiped as part of a normaltransaction, it is automatically checked against the file and analert is given if the cards details match those on file.

The IHCF contains information on five million missing cards and isused by more than 80,000 participating retailers in the UK. During2000 some 280,000 cases of attempted fraud were prevented usingthe system. The payments industry is actively encouragingextension of its use both in the UK and abroad, where it will help tocombat cross-border fraud.

Helping retailers fight fraud

Training and then rewarding retail staff for stopping fraudA major new retailer training initiative, run on behalf of the UKbanking industry in close collaboration with retailers, police andother organisations including Crimestoppers, is educating retailstaff about how to identify and prevent card fraud attempts.

The Spot & Stop Card Fraud programme is targeting retailers inthe top eight fraud-prone areas that account for around 40 per

cent of all UK-based fraud (currently London, Manchester,Birmingham, Leicester, Glasgow, Edinburgh, Leeds and Croydon).

This initiative is part of a wider, ongoing retailer educationprogramme which includes producing a range of free publicationsand raising fraud prevention awareness through initiatives like aCard Security Week held each September.

UK card issuers run a retailer reward scheme which paid out morethan 10 million in 2000 to staff who retained cards that werebeing used fraudulently.

Preventing fraud (cont)


21/40

19

Working with the police

Exchanging information to fight fraudWorking with the police is essential in fighting card fraud,particularly the organised criminals largely to blame for the UKssurge in plastic card fraud.

Organised criminals often use sophisticated methods of cardcrime as a comparatively low risk way of raising revenue that laterfunds more violent crime. Criminals behind offences like drugtrafficking, kidnapping, smuggling and terrorism are often alsoinvolved in card crime.

Fraud Intelligence Bureau (FIB)The FIB based at APACS shares information and intelligencebetween the banking industry and police to combat counterfeitskimming. It has helped destroy several major counterfeiting ringsrun by organised criminals.

The FIB is further developing its role as a leading centre forexchange of information and intelligence between police and thebanks on all types of card fraud.

APACS also provides speakers for police training courses as well

as education materials. At an operational level, the banks andbuilding societies liaise with the cheque and credit card squadsregarding criminal activity and specific investigations.

Organised criminals often use sophisticated methods of cardcrime as a comparatively low risk way of raising revenue thatlater funds more violent crime. The penalties for cardcriminals are generally substantially lower than, for example,

drug dealers.David Cooper, Chairman of the Plastic Fraud Prevention Forum


22/40

20

Educating cardholders about how to prevent fraud

The Card Watch campaign aims to increase awareness amongcardholders of what they can do to prevent fraudulent use oftheir cards.

Card fraud results in inconvenience to the cardholder which couldinclude the theft of other possessions kept with cards, like keysand diaries.

While UK codes and legislation makes cardholders potentiallyliable for the first 50 of fraudulent losses before their card isreported lost or stolen, in practice the bank or building society willusually refund the full amount lost. If a cardholders details arecompromised as in counterfeit skimming or many card-not-present frauds, there is no liability.

Card Watch offers the following advice to cardholders.

Advice for cardholders


23/40

21

1 Guard your cards. Dont let them out of your sightwhen making a transaction.

2 Dont carelessly discard receipts from cardtransactions.

3 Check your receipts against your statementscarefully. If you find an unfamiliar transaction,contact your card issuer immediately.

4 Never write down your PIN and never disclose it toanyone, even if they claim to be from your bank orthe police.

5 Report lost or stolen cards to your bank or buildingsociety immediately.

6 When using a cash machine, be wary of anyonetrying to watch you enter your PIN and do not allowyourself to be distracted.

7 Sign any new cards as soon as they arrive. Ensurethat you cut up the old cards immediately the newones become valid.

8 Dont keep your cheque book with your cards.

Top tips


24/40

22

9 If you use a bag, carry it firmly with the clasptowards you. A money belt or secure inside pocketis best for valuables.

10 Dont leave cards unattended in a bag, briefcase orjacket in a public place and keep your bag orbriefcase on your lap. If you have to put it on thefloor, secure the strap.

11 In pubs or restaurants, dont leave your cards injackets or handbags over the backs of seats.

12 Never leave plastic cards or other valuables in a

parked car.13 Keep wallets and bags out of sight when driving.

14 At work, keep your bag and other personalbelongings locked in a cupboard or drawer.

15 When on holiday, dont leave valuables unattended

in your accommodation, on the beach or by thepool. Use a hotel safe if available.

16 Consider registering with a card protection scheme particularly if you have several cards. Contactyour card issuer for details.

Advice for cardholders when using the Internet to

make a purchase is covered on page four.

Also


25/40

23

Credit cards were first issued in the UK in 1966 and debit cardsin 1987.

Since then, card usage has grown every year: in the past five yearsthe number of cards in issue has grown by 32 per cent. Today thereare more than 42 million cardholders in Britain and almost 127million plastic cards including credit, charge, debit, cash (ATMonly) and cheque guarantee cards.

89 per cent of adults hold one or more plastic cards

56 per cent of adults hold a credit/charge card

84 per cent of adults hold a debit card

Credit and debit card purchase volumes areexpected to more than double in the next ten years

The first ATMs were introduced in 1967. The earlymachines had limited functions, dispensing fixedamounts of cash in exchange for tokens. It was onlyin the mid 1970s that magnetic stripe cards were

used to withdraw cash There are 31,000 ATMs in the UK

Card facts and figures


26/40

24

On an average day there are around 5.5 millioncash withdrawals from ATMs (about 2 billion intotal during 2000)

The average ATM withdrawal is 56

The average ATM-user visits an ATM once a week The average annual spend per credit card is

approximately 1,500

The average purchase on a credit card at a retailoutlet is around 52

Nearly six billion transactions were made withplastic in 2000

Around 160 billion was spent by UK cardholdersin UK card-based retail transactions in 2000

In 2000, the average total loss per lost or stolencredit or debit card used fraudulently was 435

292.6 million was lost to card fraud last year

Nearly 67 per cent of all fraudulent card use inthe UK takes place at the retail point-of-sale

Card facts and figures (cont)


27/40

25

The major players in card fraud prevention are the banks, retailersand police. Their continuing efforts focus on developing toughermeasures that are both effective at combating fraud and realisticfrom an operational point of view.

Leading the fight against fraud is the APACS Plastic FraudPrevention Forum (PFPF), comprising representatives of all themajor card issuers in the UK and the card schemes including Visaand Europay/MasterCard. Its role is to develop and implementstrategies to prevent card fraud. Card Watch, the public awarenesscampaign, was set up by the PFPF in the early 1990s as the focusof the industrys activities to combat plastic card fraud.

The PFPF have regular meeting with key figures from the majorretailer associations, the police and Home Office.

The major players


28/40

26

APACS

Main Switchboard Number ..........................................020 7711 6200Richard Tyson-Davies ..................................................020 7711 [email protected]

APACS MEMBER BANK AND BUILDING SOCIETY CONTACTS

ABBEY NATIONALMain Switchboard Number ..........................................0870 607 6000Media Relations Office..................................................020 7612 4979Media Relations Fax Number ......................................020 7612 [email protected]

ALLIANCE & LEICESTERMain Switchboard Number ..........................................020 7629 6661General Press Office Number ......................................020 7396 6429Press Office Fax Number..............................................020 7396 6466Michelle.pegley@alliance-leicester.co.ukwww.alliance-leicester.com

BANK OF ENGLANDMain Switchboard Number ..........................................020 7601 4444

General Press Office Number ......................................020 7601 4411Press Office Fax Number..............................................020 7601 [email protected]

BANK OF SCOTLANDMain Switchboard Number ..........................................0131 442 7777Press Office Number ....................................................0131 243 7077

Press Office Fax Number..............................................0131 243 [email protected]

Useful contacts


29/40

27

BARCLAYCARDMain Switchboard Number ..........................................01604 234 234Press Office Number ....................................................01604 251 229Press Office Fax Number..............................................01604 253 [email protected]

BARCLAYS BANKRetail Financial Services CommunicationsMain Switchboard Number ..........................................020 7699 5000Retail Press Office ........................................................020 7699 2387Fax Number: ................................................................020 7699 [email protected]

CAPITAL ONEMain Switchboard Number ..........................................0115 843 3300Press Office ..................................................................0115 843 3174Fax Number ..................................................................0115 843 [email protected]

CITIBANK

Main Switchboard Number ..........................................020 7500 5000General Press Office Number ......................................020 7986 5602Press Office Fax Number..............................................020 7986 [email protected]


30/40

28

CLYDESDALE BANKMain Switchboard Number ..........................................0141 248 7070General Press Office Number ......................................0141 223 2555Press Office Fax Number..............................................0141 223 [email protected]

CO-OPERATIVE BANKMain Switchboard Number ..........................................0161 832 3456General Press Office Number ......................................0161 829 5522General Press Office Fax Number................................0161 839 [email protected]

COUTTS GROUPMain Switchboard Number ..........................................020 7753 1000General Press Office Number ......................................020 7753 1774Press Office Fax Number..............................................020 7753 1042

[email protected]

HALIFAXMain Switchboard Number ..........................................01422 333 333

Press Office Number ....................................................01422 332 439Press Office Fax Number..............................................01422 333 [email protected]

Useful contacts (cont)


31/40

29

HFC BANKMain Switchboard Number ..........................................01344 890 000Press Office Number ....................................................01344 892 411Press Office Fax ............................................................01344 892 [email protected]

HSBC HOLDINGS(includes HSBC Bank, HSBC Asset ManagementHSBC Investment Banking and the HSBC Group worldwide)Main Switchboard Number ..........................................020 7260 9000General Press Office Number ..................................020 7260 8206/7Press Office Fax Number ....................................020 7260 8215/9478Out-of-hours pager numbers for duty press officers:

0941 105821/[email protected]

LLOYDS TSB BANKMain Switchboard Number ..........................................020 7626 1500General Press Office Number ......................................020 7356 2493Press Office Fax Number..............................................020 7356 1369

[email protected]

MBNA INTERNATIONAL BANKMain Switchboard Number ..........................................01244 672 000General Press Office Number ......................................01244 672144Press Office Fax Number..............................................01244 574 [email protected]

www.mbna.com


32/40

30

NATIONAL AUSTRALIA BANKMain Switchboard Number ..........................................020 7710 2100General Press Office Number ......................................020 7710 2435Press Office Fax Number..............................................020 7796 [email protected]

NATIONWIDE BUILDING SOCIETYMain Switchboard Number ..........................................01793 655 000General Press Office Number ......................................01793 655 198Press Office Fax Number..............................................01793 655 [email protected]

NATWEST GROUPMain Switchboard Number ..........................................020 7920 5555Press Office Fax Number..............................................020 7920 1862Retail Bank Press Office ..............................................020 7920 5847

[email protected]

NORTHERN ROCKMain Switchboard Number ..........................................0191 285 7191

General Press Office Number ......................................0191 279 4676Press Office Fax Number..............................................0191 279 [email protected]



33/40

31

THE ROYAL BANK OF SCOTLANDMain Switchboard Number ..........................................0131 556 8555Press Office Fax Number..............................................020 7920 1862Retail Bank Press Office ..............................................020 7920 5847

[email protected]

WOOLWICHRetail Press Office ........................................................020 7699 2387Fax Number ..................................................................020 7699 [email protected]


34/40

32

CARD SCHEMES CONTACTS

VISA INTERNATIONALMain Switchboard Number ..........................................020 7937 8111Press Office Fax Number..............................................020 7795 [email protected]

MASTERCARD/EUROPAY INTERNATIONAL (Brussels)General Press Office Number ..................................00 32 2 352 5647Press Office Fax Number..........................................00 32 2 352 5732www.mastercard.com

SWITCHMain Switchboard Number ..........................................020 7330 0700General Press Office Number ......................................020 7330 0700Press Office Fax Number..............................................020 7330 [email protected]

AMERICAN EXPRESSMain Switchboard Number ..........................................01273 693 555General Press Office Number ......................................020 7976 4498Press Office Fax Number..............................................020 7233 0873

[email protected]

DINERS CLUBC/o General Press Office Number................................020 7986 5602Press Office Fax Number..............................................020 7986 [email protected]



35/40

33

All available from: APACS Public Affairs Request Line,020 7711 6359 or [email protected]

Plastic Card Review (50 charge except for journalists)An annual publication providing a comprehensive analysis oftrends in plastic card use in the UK over the last seven years.

Fraud in FocusAn annual publication offering an overview of fraud trends andcurrent fraud prevention initiatives (available in pdf format fromwww.cardwatch.org.uk).

Spot & Stop Card Fraud pack

A collection of fraud prevention literature for retail point-of-salestaff, including a four step guide to spot and stop card fraud

designed to be kept at the sales counter. Free packs can beordered from the Card Watch Information Office on 08705 500 005,or visit www.cardwatch.org.uk.

Publications


36/40

34

Acquirer (merchant acquirer)

The bank or other financial institution which has a contractualagreement with a merchant. The acquirer handles/processes debitand credit card transactions received, reimbursing the merchantfor the amount of the sale and levying a servicecharge/commission for the service.

Authorisation

The process whereby a merchant (or a cardholder through an ATM)requests permission for the card to be used for a particulartransaction.

Automated Teller Machine (ATM)

A computerised self-service device permitting the holder of anappropriate card and PIN to withdraw cash from their account andaccess other banking services. Also known as a cash machine,cash dispenser or hole-in-the-wall machine.

Biometrics

Biometric methods of identification work by measuring uniquehuman characteristics as a way to confirm identity, for example,finger or iris scanning or dynamic signature verification.

Card Authentication Method (CAM)The means by which a plastic card is determined genuine and notcounterfeit. The chip card provides the best CAM available.

Card issuer

The bank, building society or other financial institution whichissued the card and which has a contractual relationship with thecardholder.

Glossary


37/40

35

Card-not-present (CNP)

Transaction where the merchant does not have physical accessto the card (e.g. through telephone, mail order or Internettransactions).

Card schemes

Organisations which manage and control the operation andclearing of transactions. Banks and building societies must bemembers of the appropriate schemes to issue cards and acquirecard transactions. Examples of schemes are:MasterCard/Europay, Visa, Switch, American Express, Diners ClubInternational.

Card Security Code

The last three or four digits of a number printed on or just belowthe signature panel on payment cards this code was formerlycalled the CV2.

Cardholder Verification Method (CVM)

The means by which the presenter of the card may be identified asgenuine, for example a signature or PIN.

Chip card

A plastic card containing a microchip which has highly securememory and processing capabilities, which can be recognised bythe gold coloured contact plate on the front of the card. Chip cardsare also known as integrated circuit cards (ICCs) or smart cards.

CIFAS The UK Fraud Avoidance System

CIFAS is an information exchange that helps its wide range ofmember organisations identify different types of fraud, including

that on plastic cards.


38/40

36

Counterfeit card

A card which has been printed, embossed or encoded so as toappear to be a legitimate card OR a card which has been validlyissued but subsequently altered or re-encoded.

Cross-border fraud

Fraud perpetrated on a plastic card, or using a card number, in acountry other than the country of issue.

CVC/CVV

Card Verification Code (MasterCard)/Card Verification Value (Visa).Encrypted numeric value contained in the data on the magneticstripe which can be checked to ensure that the information has notbeen altered in any way.

Electronic commerceTransactions which are conducted over an electronic networkwhere the buyer and merchant are not at the same physicallocation e.g. plastic card transactions via the Internet.

Electronic purse

Also known as e-purse, this is a multi-purpose pre-paid cardwhich contains electronic value exchanged for goods and services.

It can be disposable or reloadable.Encryption

A method of making information secret, so that only a person whoknows the necessary key or password can understand or decryptthe information.

Floor limit

A limit agreed between the merchant and acquiring bank for each

sale above which authorisation must be obtained by the merchant.

Glossary (cont)


39/40

37

Fraud Intelligence Bureau (FIB)

A rapid response unit based at APACS that shares informationbetween the banks and police to combat counterfeit fraud.

Industry Hot Card File (IHCF)

Computerised list of lost or stolen cards, for use by merchants.

Intelligent detection systemsComputer systems developed by the banking industry to helpidentify fraudulent card use. Also known as knowledge-basedsystems and neural networks.

Skimming

The most prevalent form of counterfeit fraud whereby a cardsmagnetic stripe details are electronically copied and put onto

another card.


40/40

The Association for Payment Clearing Services (APACS) is theindustry body for the major UK banks and building societiesfor non-competitive areas of money transmission, includingcard payments.

The APACS Plastic Fraud Prevention Forum (PFPF) representsall of the UKs major card issuers and works to develop cardfraud prevention initiatives. Card Watch is the PFPFs publicawareness campaign and the focus for co-ordinated activitiesto combat card fraud.

For further information about Card Watch visitwww.cardwatch.org.uk, phone 020 7711 6356or email [email protected].

APACS (Administration) Ltd 2001

Card Fraud Facts 2001

Documents

Transcript of Card Fraud Facts 2001