Anger at card fraud reporting changes

Changes to reporting procedures for plastic card fraud have come into effect - but one critic is warning the changes may make things easier for fraudsters.

From now on, card fraud will be reported to banks, which will then choose to forward the report to the authorities if they deem it is necessary.

The Home Office said from 1 April new procedures under the Fraud Act 2006 mean banks and financial institutions become the first point of contact for cheque, plastic card and online fraud offences.

The Home Office said in a statement: "In most cases consumers will be required to report these crimes to their bank or building society directly and not to the police. The financial institution will then pass the details of the relevant crime on to the police."

It said the changes follow discussions with the Association of Chief Police Officers and the financial sector, with the main aim to reduce the level of bureaucracy involved in fraud recording and to streamline reporting and the initial investigation of such crimes.

The new rules cover England, Wales and Northern Ireland.

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But Andrew Goodwill, MD of security company Early Warning, believes this will allow banks to let themselves off the hook and hide the true extent of card fraud suffered by UK card-holders.

Online retailers are especially vulnerable, as banks are not liable for Card Not Present (CNP) fraud and will be less inclined to forward such reports to the police.

He added that bank staff are not trained to take reports in the same way as the police, so vital evidence might be missed, making it harder for fraudsters to be tracked down.

He said: "It's not fair to let banks act as judge and jury for consumers. Fraud is an offence and it should be dealt with by the police. Are we going to get to the situation that if your house is burgled, you have to report it to your insurance company? The police should not be allowed to negate their responsibility for fraud."