UK credit card fraud down due to chip and pin

LONDON, March 7 (Reuters) Credit and debit card fraud fell significantly for the first time in 10 years last year in part due to the introduction of the chip and pin technology, figures showed today.

Total card fraud losses fell by 13 per cent, from 504.8 million in 2004 to 439.4 million in 2005, according to figures from APACS, the UK payments association.

Cases of cloned card fraud and fraud on stolen or lost cards fell and the only rise was in cases where cards were not present such as purchases via the internet or mail.

''Seeing card fraud losses come down is cast-iron proof that chip and pin is doing its job,'' Sandra Quinn of APACS said in a statement.

''Back in 2002, we forecast that fraud would have risen to 800 million pounds in 2005 if we didn't make the move to chip and pin so it's heartening to see total losses well beneath this figure.'' Chip and pin technology was introduced in 2003 and UK consumers are now no longer able to sign when paying with their cards but have to key in the four-digit pin.

A smaller fall of four million pounds was recorded in 2003 but the 2005 fall of 65 million pounds was the first significant fall since 1995.

The 2005 figures also showed a fall in the level of ID card theft following either account takeover or fraudulent applications to 30.5 million from 36.9 million.

REUTERS SI PM0842