UK Card Fraud Down by 30%

Fraud on debit and credit cards has declined since the banks issued the new chip and pin technology says APACS (Association of Payment Clearing Services). Fraud has been reduced by around 30% since the anti-fraud scheme was launched. The first half of last year saw UK banks lose 126.6 million pounds on card fraud, the same period this year cost the banks 36 million pounds less.

Chip and Pin technology was introduced to try and combat the rising levels of card fraud. The last phase of the scheme will start on February 14 th 2006 when you will no longer be able to sign for your goods using your credit card. From February, if you forget your pin then you may have to leave your goods behind if you have no other method of payment.

Every UK cardholder is being encouraged to start using their pin now. A minority of card holders who already have chip and pin technology on their credit cards are still using the old method of signing for their goods. Remembering your pin can be a problem for some people so use your pin now and by the time February comes you will be used to using it and hopefully be able to remember your pin.

A significant number of cardholders, however, are using their pin when purchasing goods without problems. 89% of consumers with chip and pin credit cards are validating their purchases using their pin and 97% of consumers with chip and pin debit cards are validating their purchases using their pin.

After the February deadline there may still be a few instances where you may be asked for a signature to validate your purchase. These instances will be if you have not yet received your chip and pin card to replace the old one or if the shop you are purchasing goods in does not yet have the technology to accept chip and pin.

When using your chip and pin be aware of your surroundings as it is still possible for you to be a victim as fraudsters can peer over your shoulder to see you entering your pin and then steal your card.

There are still some experts that think the new chip and pin will only exacerbate the problem of credit card fraud. Only time will tell and with their already having been a decrease in the amount of fraud involving debit and credit cards it looks as if chip and pin is winning the battle.