The 3rd Man, a consultancy that helps retailers to protect themselves from Internet and other types of card not present (CNP) credit card fraud, says that retailers need to continue focusing their efforts in preventing CNP fraud and not be distracted by the need to also support Chip and PIN. By employing different techniques, criminals appear as bona fide customers but are in fact unscrupulous dupers. Not only do they avoid paying for the goods, but also the retailer helps them out by posting the goods to them. According to the Association of Payment Clearing Services (APACS), losses incurred as a result of fraud were well in excess of £400 in 2002. CNP fraud rose from £56.8m in 2000 to £95.7m in 2001 and has risen again in 2002 to £110.1 million. In the majority of CNP fraud incidents, the retailer taking the payment is at risk, not the bank that issued the card.
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