Chip and PIN credited for £36m drop in card fraud

Card fraud has fallen by £36m in the first six months of this year following the introduction of the new chip and PIN system, according to the latest official figures.

Fraud on counterfeit and lost and stolen plastic debit and credit cards is down by almost a third from £126.6m in the first half of last year to £89.9m for the same period this year.

Payment industry body Apacs claims the drop in fraud is a result of the increasing use of chip and PIN technology to authenticate card payments on the high-street.

Half-year figures for fraud on card-not-present transactions and identity theft on card accounts will be published by Apacs next month.

Consumers are also being warned of the Valentine's Day cut-off point next year when people with a chip and PIN card will have to use their PIN number in order to pay for goods at check-out tills. The 14 February 2006 deadline will not apply to purchases at outlets not yet using chip and PIN, some purchases abroad and disabled customers opting to use chip and signature cards instead.

Apacs is launching a four-month 'I love PIN' campaign to encourage cardholders to find out, memorise and use their PINs for all their debit and credit cards.

Paul Smith, director of the British Retail Consortium, said in a statement: "Our experience in shops shows that most people have taken to chip and PIN like ducks to water. They find it simple, quick and convenient. Now is the time to encourage those not using PIN to get ready to do so by 14 February next year, so that we can drive even more fraud out of our shops."

Check out silicon.com's In-Focus special on the future of chip and PIN technology.