Chip and pin ‘helping credit debt management’
The chip and pin system is helping debt management efforts which aim to reduce the money lost through fraudulent transactions, it has been claimed.
UK payments association Apacs reveals the amount of money lost to credit card fraud has decreased since the introduction of the scheme in 2004.
Figures published by the association portray a three per cent decrease in credit card fraud losses year-on-year to a total of £428 million in 2006.
Mail-non-receipt fraud, in which the card is delivered to the wrong person or stolen in the post, contributed £15.4 million to this total, compared with a peak of £72.9 million in 2004.
Apacs spokesperson Mark Bowerman explains: “In 2004 there were an awful lot of cards being distributed because that was one of the main years for the chip and pin roll-out.”
“Because chip and pin wasn’t 100 per cent up and running, if you stole a card, you just needed to forge a signature and you could use it,” he adds.
Victims of fraud may find their credit debt management efforts could be improved by obtaining expert advice.
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