Credit card fraud falls but buyers told to stay cautious

CREDIT card fraud has halved in the past four years, according to new figures from a leading banking group – but people are still being warned to beware of dodgy transactions.

Some 260,000 fake debit and credit card transactions worth more than €22million were recorded last year – an average of almost €85 each.

However, the Banking and Payments Federation Ireland (BPFI) said that progress is

‘On downward trend’

being made in this area, with card fraud losses down 49% compared to 2016.

‘This decrease in card fraud is even more marked, when set against a 28% increase in credit and debit card usage in the same three-year period,’ the BPFI said.

Some 90% of card fraud takes place online rather than in shops, and cardholders are being warned to take precautions when shopping online as the Black Friday cut-price frenzy takes place today.

BPFI chief Brian Hayes said: ‘Card fraud losses have been on a downward trend over the last three years and in 2019 were at their lowest level since 2012. This comes at a time when t here has been a significant increase in card usage.

‘The fall in losses can be attributed to a combination of better detection and fraud monitoring systems which banks have put in place, but also to the fact that consumers are becoming more aware of the risks of card fraud.

‘That being said, however, with a total of almost 260,000 fraudulent debit and credit card transactions over the course of 2019 amounting to just over €22million, efforts are required to continue to drive these figures down.’ Mr Hayes added that ‘this is pertinent in the current climate when consumers are shopping online more than ever and when our figures are showing us that over 90% of card fraud takes place online or using telephone or mail order’.

He continued: ‘As the preChristmas rush draws thousands of shoppers online, we are urging consumers to take extra precautions when shopping online.’

Meanwhile, younger people’s online shopping behaviour puts them at most risk, the new research showed.

It also found that 59% of people say they will do more of their Christmas shopping online this year.

While many shoppers are taking the right steps to protect themselves, many more are opening themselves up to being defrauded, with younger people aged 18-24 engaging in online shopping behaviour which puts them at most risk, such as clicking on links from social media adverts.

‘Take extra precautions’