Joe Public blames banks for credit card fraud

Will chip and PIN bolster public confidence?


Over half of all consumers (54%) feel that banks and building societies aren't doing enough to protect them from credit and debit card fraud, according to the results of a survey published today.

Although the survey (conducted last month) didn't quiz members of the public on the Chip and PIN programme, a serious omission in our view, it still provides some insight into public perceptions about credit card fraud.

The chip and PIN system is designed to guard against credit card fraud by requiring customers to tap in a four digit number - rather than signing a payment slip - when paying for their goods. The system is currently on trial in Northampton but will be nationwide by 2005, as credit cards wiith embedded smart cards are issued throughout the UK.

Depending on your point of view, this is either a great leap forward in the fight against fraud or a scheme that will shift the burden of proving fraud has taken place onto consumers while moving criminal scams from the high street onto the Internet.

But we digress.

According to today's survey of UK adults into attitudes towards credit card fraud, Joe Public blames banks - not law enforcement agencies - for a failure to prevent fraud. Card fraud is one of the fastest growing crimes in the UK. A record £424.6 million of fraud was committed on UK cards in 2002, up from £411.5 million in 2001, according to UK trade association the Association for Payment Clearing Services (APACS).

Only seven per cent of the 1,000 respondents to the survey, commissioned by data mining firm SPSS and conducted by market research outfit ICM, have ever been victims of ATM/credit card fraud.

Only 16 per cent of those questioned said that they thought the police have chief responsibility for preventing fraud. And just one in 50 (two per cent) of those quizzed said retailers had to take charge of combating credit card fraud.

The main responsibility for preventing fraud was placed on the shoulders of card issuers i.e. banks and building societies.

Meanwhile only a quarter of respondents (28 per cent) to the study feel enough is being done to identify and deal with fraud in general.

The study was conducted in May, a month after the start of the chip and PIN programme. The effect of the programme on public attitudes to fraud prevention will be an interesting point for subsequent studies.

Shame SPSS didn't think to ask about it though.

SPSS' research is part of the company's ongoing campaign to identify consumer perceptions to fraud, understand the most common security breaches, and help businesses combat the phenomenon. ®

Related Stories

Credit card firms 'profit from Net fraud'
Small.biz needs help with chip and PIN
Smart credit on UK cards. Will it cut fraud?
Schoolgirl turns tables on email credit card fraudster
E-fraud costs retailers millions


Other stories you might like

  • NASA delays SLS rollback due to concerns over rocky path to launchpad
    The road to the Moon is paved with... river rock?

    NASA's Moon rocket is to trundle back into its shed today after a delay caused by concerns over the crawlerway.

    The massive transporter used to move the Space Launch System between Vehicle Assembly Building (VAB) and launchpad requires a level pathway and teams have been working on the inclined pathway leading to the launchpad where the rocket currently resides to ensure there is an even distribution of rocks to support the mobile launcher and rocket.

    The latest wet dress rehearsal was completed on June 20 after engineers "masked" data from sensors that would have called a halt to proceedings. Once back in the VAB, engineers plan to replace a seal on the quick disconnect of the tail service mast umbilical. The stack will then roll back to the launchpad for what NASA fervently hopes is the last time before a long hoped-for launch in late August.

    Continue reading
  • Datacenter operator Switch hit with claims it misled investors over $11b buyout
    Complainants say financial projections were not disclosed, rendering SEC filing false and misleading

    Datacenter operator Switch Inc is being sued by investors over claims that it did not disclose key financial details when pursuing an $11 billion deal with DigitalBridge Group and IFM Investors that will see the company taken into private ownership if it goes ahead.

    Two separate cases have been filed this week by shareholders Marc Waterman and Denise Redfield in the Federal Court in New York. The filings contain very similar claims that a proxy statement filed by Switch with the US Securities and Exchange Commission (SEC) in regard to the proposed deal omitted material information regarding Switch's financial projections.

    Both Redfield and Waterman have asked the Federal Court to put the deal on hold, or to undo it in the event that Switch manages in the meantime to close the transaction, and to order Switch to issue a new proxy statement that sets out all the relevant material information.

    Continue reading
  • Google to pay $90m to settle lawsuit over anti-competitive behavior on the Play Store
    US developers that qualify could receive more than $200,000

    Google is to pay $90 million to settle a class-action lawsuit with US developers over alleged anti-competitive behavior regarding the Google Play Store.

    Eligible for a share in the $90 million fund are US developers who earned two million dollars or less in annual revenue through Google Play between 2016 and 2021. "A vast majority of US developers who earned revenue through Google Play will be eligible to receive money from this fund," said Google.

    Law firm Hagens Berman announced the settlement this morning, having been one of the first to file a class case. The legal firm was one of four that secured a $100 million settlement from Apple in 2021 for US iOS developers.

    Continue reading
  • Devops tool Jenkins now requires Java 11: This might sting a bit
    Final shift set for version 2.357 of developer automation platform

    It has taken a while, but the Jenkins project confirmed this week that Java 11 will be required from this week's Jenkins 2.357 and for the upcoming September LTS release.

    Jenkins, originally authored by Kohsuke Kawaguchi, recently passed its 10th anniversary. Originally known as Hudson, before the Oracle / Sun deal resulted in a fork, the platform is a veteran of the continuous integration and continuous delivery world. It is also written in Java.

    It's going to be a bit of a wrench. Java 11 itself was released in 2018 as a long-term support version, and the Jenkins LTS core has been Java 11-capable for a while now. The June LTS also supports Java 17 (the latest LTS of Java SE.)

    Continue reading

Biting the hand that feeds IT © 1998–2022