September 6, 2007

London hotspot for card fraud

by Jan Harris

London hotspot for card fraud
Card not present (CNP) fraud has soared by 22% in the UK over the last year according to retail watchdog Early Warning.

According to Early Warning’s research, the problem is worst in London, with postcode area SE18 having the highest level of CNP fraud, which is committed over the Internet, on the phone and by mail order.

After London, Manchester was found to have the biggest problem with CPN fraud, followed by Coventry, Kilmarnock, Bristol, Brighton, Leicester, Leeds, Glasgow and Nottingham.

Early Warning compiled the figures by tracking the postcodes of addresses where fraudulently obtained goods are delivered. The organisation then created a map showing CNP hotspots.

The organisation found that CNP fraud is becoming more widespread and is becoming established in areas where it was not previously a problem. The fastest growth in CNP fraud was found in Northampton and Stockport.

This type of fraud is expected to cost traders £200m in 2007, resulting in £40m of lost revenue to the UK economy.

According to Early Warning, the problem is exacerbated by current Home Office regulations which distance the police from the situation. CPN fraud is also often not fully reported and security such as Verified by Visa and Secure Mastercard has not been widely adopted.

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