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Chip and PIN Press Office
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Combating the rise in card fraud

Card fraud is increasing every year in the UK and over £424 million of fraud was committed on UK cards in 2002. Chip and PIN is a major development in combating fraud and is expected to dramatically reduce fraud losses.

If the chip and PIN system was not put into action, forecasts show that UK losses would be in the region of £800 million by 2005. If this were allowed to happen, the survival of the card payments system could be in jeopardy and this would impact heavily on the retail sector.

The rise in card fraud over the last few years has been caused by high levels of organised card crime alongside increases in the number and usage of payment cards. Much of the money obtained from card fraud is used to fund other serious crime such as drug trafficking, illegal immigration and counterfeit goods. Other crimes such as burglaries, muggings and car break-ins are often motivated by the opportunity to steal payment cards.

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