News Search: More search options

Business: St Valentine`s day cards increase online fraud

[+] Receive News Alerts via email/RSS

Email: RSS

St Valentine`s day cards increase online fraud

As a result of the banks’ insistence on Chip and Pin verification for all retail credit card transactions from today, already high on-line credit card fraud will escalate, predict Internet security specialists Early Warning.

[ClickPress, Mon Feb 13 2006] Data from Early Warning (, who operate CardAware, the on-line scheme that provides extra protection for Internet merchants against Card-Not-Present fraud, show steep increases in CNP crime over the last year.

This suggests that whilst the credit card companies’ roll-out of the much-hyped “Chip & PIN” system is helping them to reduce their own fraud liability within traditional retail environments, the problem is likely to just be displaced into CNP sales channels instead. Of course, the card companies have no liability for fraudulent sales in the CNP environment.

Commenting on these new figures, MD Andrew Goodwill said, “Our figures very much back up the view that Chip & PIN is simply displacing the fraud problem into CNP sales channels rather than solving the problem per se. When the fraud is perpetrated in this way, the retailer is fully liable and the card companies can simply ignore the problem. Andrew Goodwill continued,

“Most businesses now accept the need to have good anti-virus protection, firewalls and security patch procedures in place in order to prevent hacking attempts and DNS attacks. There is now a need for all companies involved with card-not-present sales to have some kind of fraud screening tool in place as well. If organisations don’t implement basic procedures with regard to verifying their CNP sales orders then they can expect to get hit by the fraudsters and their business might not survive.”

Background to Fraud

Credit Card fraud has been with us since the first credit cards started appearing back in the early 1950s. Five decades later and the problem now represents a fraud epidemic on a global scale. Card-not-present fraud in the UK has grown from £2.5 million in 1994 to £116.4 million in 2003. Whilst banking initiatives such as "Chip & Pin" have helped reduce fraud in card-present environments, where the liability is with the banks, the card not - present environment continues to see increasing fraud activity - it's now the single largest credit card fraud type - and the full liability lies with the merchant.

* Ends *

Further information about this press release, pictures and application screenshots can be obtained by calling Andrew Goodwill @ Early warning on 08708744999, or by emailing

Notes to Editors

Early Warning UK Ltd manages and administers an online repository of known card-not-present (CNP) frauds and makes this data available to other authorised retailers. Early Warning develops and markets products that allow access to this data-sharing facility. In

addition, Early Warning UK is also involved with bespoke development projects in the area of fraud prevention.

Bookmark this release: - Digg - Furl - Blinklist - Reddit

Search for blog references to this company: Technorati | Google | BlogPulse | Icerocket | Feedster

Search for newswire references to this company via WireClip

TrackBack URL for this release:

Company: Early Warning UK Ltd
Contact Name: agoodwill
Contact Email:
Contact Phone: 08708744999
Related website


[+] Global news distribution by ClickPress. To manage your News Alerts Subscription, click here. To reach News Alerts subscribers via an Enhanced Distribution, click here.

Home | Latest News | Submit News | Advanced Search | About Us | Contact Us | News Alerts Subscribe/Unsubscribe |
Terms and Conditions | Copyright © 2005-2006 ClickPress, part of the PR Press Network

Other sites: | | | ReachRadio | SimpleScout | | Free magazines