MANCHESTER, ENGLAND, May 22, 2009
/24-7PressRelease/ --
Thinking Money announces that credit card fraud losses total GBP609.9m, online banking fraud losses total GBP52.5m and cheque fraud total GBP41.9m.
Thinking Money believes that technological advancements by credit card companies will be fundamental in combating fraud.
Credit card fraud is on the rise and, according to the Association for Payment Clearing Services -
APACS), around 50% of this now is coming from card-not-present (CNP) fraud.
APACS has confirmed that CNP fraud has risen 13% in the past year and accounted for GBP328.4 million of trading in 2008. UK credit card companies are committed to the reduction of credit card fraud losses and so are keen to explore any possible solutions.
Thinking Money states that Visa has now teamed-up with UK credit card companies to trial a new technology which hopes to combat CNP fraud - the EMUE card.
How does the EMUE card work?
The EMUE card (
http://www.emue.com/) works by having a small digit keyboard and an LCD screen embedded on the reverse of the credit card. When shopping or banking online you can type in your unique pin number - as normal on the keyboard. This will generate a series of numbers solely to you and your card which will then be required to continue with your online purchases. It is essentially, for the first time, bringing chip and pin into the home.
EMUE Credit Card Trials
Thinking Money states that developments in credit cad technology should limit both losses to credit card customers and credit card companies.
Trials are currently being undertaken by 500 Deloitte employees within the UK to test new credit card technology. It is hoped that
Visa and
MBNA credit cards will be able to draw conclusions by the end of the year on the effectiveness of this technology in reducing fraud and in understanding usability.
This testing is not only analysing the technological aspects of the credit card but also the logistics, such as battery life. It is hoped to extend this to a period of three years after which time the credit card would expire with the battery.
About EMUE Credit Cards
EMUE, the company behind the technology are based in Australia and hope that the uses for the card won't stop at CNP fraud - they believe they have produced a user friendly ID card which will have many applications.
Meanwhile, Visa and MBNA (
http://www.mbna.co.uk) are keen to assure their credit card customers that the product, if successful, would not be a replacement for the more traditional methods of fraud protection - such as name and security code but an additional safeguard in the fight against CNP fraud.
This evolution of credit card protection, Thinking Money believes, should make online banking, online shopping and other instances of card-not-present shopping all the more secure. As a result, EMUE may well be part of the answer in saving retailers, consumers and credit card companies huge losses from fraud.
Notes for editor:
Thinking Money is a free financial advice and news site, commenting on industry events including loans, credit cards and economic developments:
http://www.thinkingmoney.org
More information and commentary can be provided on request.
References:
Credit Card Protection from EMUE:
http://www.emue.com/
MBNA Credit Cards:
http://www.mbna.co.uk/
MBNA Ireland Credit Cards:
http://www.mbna.ie/
APACS UK Payment Association (the trade forum for banks, building societies, and credit card companies):
http://www.apacs.org.uk/---
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