Credit card fraud has topped the £600m mark for the very first time, with the chip and pin feature fingered as one of the root causes.

Despite desperate attempts by the powers that be, a UK card is stolen or fraudulently used once every seven seconds. The problem isn’t just domestic, which makes it all the harder for the authorities. Several countries around the world have been found to have some sort of network designed to benefit from cards from the UK.

Such countries as the US, Canada, Australia and China make this problem very much a global one.  
"Card numbers are acquired in the UK by criminal gangs and then used overseas to buy goods. Card fraud is a truly global undertaking and so increasingly is the fight against it," comments Steve Head, chief superintendent at the City of London Police economic crime unit.

A sentiment echoed by a leading member of an anti fraud unit, "It is difficult to pursue some of these gangs because they are located overseas in a different jurisdiction and they use the internet to commit their crimes. However, generally, we are getting better at spotting frauds earlier and they are getting away with less per transaction as a result."

Abroad

Staggeringly, overseas fraud involving UK credit cards are 14 times higher than they are in Britain a report has stated. Anti fraud systems have been put in place within this country which has significantly cut the number of illegal activities taking place, but this has only resulted in it being forced into other countries where protection is more lax.

Industry consultant Peter Welch commented, "Losses from overseas fraud accounted for 40% of total losses on UK credit and debit cards in 2007, rising to 43% in France and around half of all losses in Spain."

Mr Welch continued, "card providers are also facing a growing threat from so-called card not present fraud, with the fraudulent use of credit and debit cards to buy items over the internet, telephone or by post accounting for three-quarters of domestic losses in the UK in 2007, compared with only around a third in 2004."

Experts also advise card holders of the perils of using their card on the internet. They advise customers to try to stick to well known websites that have a secure anti fraud logo listed.

Online

In fact a report by the fraud company CPP revealed that 77 percent of children were allowed to roam the internet unsupervised with 23 per cent purchasing online without parental permission.

Unsupervised online buying by minors who may not be so prudent when providing bank details is another reason for the increase in fraud.

"They are putting up credit card details and home address details on the internet which can be used by fraudsters," said fraud expert Michael Lynch.

He added. "Also they are putting their parents' details out there and they don't know what sites they are going on and whether they are secure or not." UK card holders are thus advised to protect their pin at all times, to be vigilant and to use basic common sense as money doesn’t grow on trees.