The statistics were obtained via a freedom of information request sent to the National Fraud Intelligence Bureau, run by the City of London Police. Credit card fraud is the most costly and common type of card fraud, according to Trustly's research. Over EUR 39 million was reported stolen through credit card fraud between 2021 and 2023. This compares to just over EUR 28 million reported stolen through debit card fraud.
Nearly 11,000 people were victims of card fraud in the past three years, with 3,543 cases reported in 2023 alone, averaging almost 300 victims per month. Credit card fraud reports peaked in 2023, with 2,171 victims, up from 1,997 in 2022. Additionally, data indicates that thousands of people are still falling victim to fraud each year, despite efforts to protect consumers. However, these victims may still be able to reclaim their money from their card providers through traditional Section 75 protection or chargeback protection.
The increasing use of Open Banking payments by businesses could also help safeguard consumers from fraud in the UK's payment system. Open Banking enables individuals to make payments directly from their bank accounts to approved retailers and provides extra security since customers don't have to input any payment details. Customers can also verify the transaction using a biometric ID for added protection.
Starting from October 2024, users of Open Banking will also receive additional regulatory protection from authorised push payment (APP) fraud. The new Payment Services Regulator (PSR) rules will require UK payment service providers to reimburse all customers who become victims of APP fraud, with limited exceptions.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now