Credit card fraud plans labelled 'incomplete'

NEWS Details of how the Commission will tackle the massive increase in credit card fraud in the EU were released yesterday. Research by the Commission attributes a large proportion of that increase to transactions via the internet and phone and firmly places the responsibility for tackling fraud with the payment systems industry. EC research revealed fraud had increased 50 per cent this year. However, Steven Philippsohn a fraud expert at solicitors Philippsohn, Crawfords and Berwald, argued that the scheme fails to acknowledge that deterring criminal activity is a key preventative measure. He said: "The missing piece [of the Action Plan] is the confrontation of the fraudster - deterrent is the best form of security." The Commission hopes to use the plan to tackle credit card fraud on a global scale and will involve the Commission working with the payments industry, member state legislators and regulators and consumer groups. Frits Bolkestein, internal market commissioner, said in a statement: "This Action Plan sets out a framework for better co-operation and co-ordination. We must work together to beat criminals at their own game." But Philippsohn added that tracking down and punishing the criminals is seriously impeded by lack of resources. He said: "Interpol has said for a long time that it lacks the resources to catch people."