APACS LAUNCHES TOP TEN TIPS TO HELP SHOPPERS STAY SAFE ONLINE THIS CHRISTMAS

- Internet, phone and mail order (CNP) fraud rises by 29%
- Internet part of CNP fraud grows to £58m in the same period
- Research shows consumers can do more to protect themselves
- Consumers can make their cards safer with Verified by Visa and MasterCard SecureCode

To coincide with the release today (8 November) of the annual mid-year card fraud figures APACS is launching a fraud awareness campaign using its Card Watch and Bank Safe Online brands to make consumers aware of the simple steps they can take to protect their cards and online bank accounts.

Whilst total card fraud losses decreased by 13 per cent in the six months to the end of June 2005 (from £252.6m to £219.4m) compared with the same period in 2004 - mainly thanks to the impact of chip and PIN - Internet, phone and mail order (CNP) fraud was the one card fraud area that continued to grow.

PLASTIC CARD FRAUD LOSSES ON UK-ISSUED CARDS
Type of fraud January to June 2004/January to June 2005 +/-%
Card-not-present (CNP) £70.2m/£90.6m/+29%
Counterfeit £66.1m/£45.6m/-31%
Lost/stolen £60.5m/£44.3m/-27%
Mail non-receipt £36.5m/£22.8m/-37%
ID theft on card accounts:£19.2m/£16.1m/-16%

Total £252.6m/£219.4m/-13%

Contained within this total:
Internet part of CNP fraud:£55.1m/£58.0m/+5%
Cash machine fraud £36.9m/£28.8m/-22%
Fraud abroad £46.0m/£41.8m/-9%

The majority of Internet card fraud involves a criminal obtaining genuine card details in the real world that are then used to shop online. Consumers can minimise the chances of becoming a victim by simply keeping cards and card details as secure as possible and not letting their cards out of their sight. Also, whenever they are given the option whilst shopping online, they should sign up to Verified by Visa and MasterCard SecureCode, both of which then make it more difficult for a fraudster to use their card details.

APACS is taking the lead on a fraud awareness campaign it is running with the international card schemes Visa and MasterCard to promote the benefits of Verified by Visa and MasterCard SecureCode, which enable cardholders to authenticate themselves when shopping online. These systems make plastic cards safer to use online and are, therefore, a valuable aid in the fight against card fraud. Consumers throughout the UK can expect to see an ongoing campaign in the press and on the radio in the run-up to Christmas detailing the benefits of these systems.

New research commissioned by APACS shows that millions of Britons are not even aware of some the basic online pitfalls from which they can easily protect themselves:

· 1 in 8 online shoppers have failed to log out when shopping online, leaving their financial details available to others
· 1 in 4 online shoppers do not check whether a website is safe and secure
· Almost half of women and half of 16-24 year olds in the UK do not know what phishing is
· More than half of the population is not yet aware of the extra protection that they can get when shopping online by signing up, when given the option, for a secure online password system offered by Verified by Visa and MasterCard SecureCode

Banking online fraud losses have also increased. These totalled £14.5 million in the six months to the end of June 2005 compared with £4 million in the same time period last year. Both online card fraud losses and online banking losses have grown hand-in-hand with the number of Internet users and huge volumes of online card transactions and banking transactions.

Now APACS, the UK payments association, through its Card Watch and Bank Safe Online initiative, is launching its ‘Top Ten Tips’ to help customers protect themselves against online card and banking fraud by urging them to take personal responsibility when using their cards, published today at www.cardwatch.org.uk and www.banksafeonline.org.uk

Sandra Quinn, director of corporate communications for APACS, said:

“These latest online fraud losses are comparatively low considering the huge number of transactions now being carried out online and it is clear that fraudsters are having more success targeting cards than online bank accounts - so our campaign is focused on cardholders. Probably nearly everyone with access to the Internet will buy something online this Christmas and there is absolutely no reason why they shouldn’t do this in complete confidence providing they follow some very simple rules - all of which are spelt out in our top ten tips. However, if you are going to do one thing this Christmas to help protect your cards from the fraudster even more then sign up to Verified by Visa or MasterCard SecureCode wherever possible when you come across them on an online site.”

In its efforts to reduce online card fraud, APACS has also enlisted the support of Crimestoppers, which has an important role to play in the reduction of fraudulent activity; members of the public can call anonymously with information on 0800 555 111.

Jane Reay, Crimestoppers director of communications said: "Our charity is committed to reducing all types of crimes and making our communities safer. We encourage people to take the simple measures recommended by APACS. However, if you have information about individuals involved in card fraud and you want to remain anonymous, then call us on 0800 555 111. Your information could help to stop card fraudsters helping themselves to your cash."

ENDS
For further information:
Sue Finnegan or Ana Santi
Proof
Telephone: 020 7713 1222/0008
E-mail: sue@proofpr.co.uk / anasanti@proofpr.co.uk

Notes to Editors:
1. TOP TEN TIPS FOR ONLINE SAFETY
Take the following steps to protect yourself from all types of CNP fraud and to bank online with confidence

· Don’t hand over valuable card or bank account information to the fraudster. Fraudsters target cards and card details so try not to let them out of your sight. Don’t give away your PINs or bank passwords to cold callers or in response to unsolicited e-mails - often known as phishing scams.

· Only ever use a protected computer. Make sure your computer has up-to-date anti-virus software and a firewall installed. Visit www.getsafeonline.org for more information.

· Keep your cards and card details safe in the real world. Most Internet fraud happens because card details are stolen in the real world and used online, so keep them safe at all times.

· Sign up whenever you are given the option whilst shopping online to Verified by Visa (www.visaeurope.com/verified) or MasterCard SecureCode (www.mastercard.co.uk/securecode). Increasingly when you go to pay online with your card you will be given the option of signing up to these schemes that involve you using a password. By signing up you will prevent a fraudster using your card details on participating sites as they will not know your password.

· Only shop at secure websites. Ensure that the security icon – the locked padlock or unbroken key symbol – is showing in the bottom of your browser window before sending your card details. The beginning of the retailer’s Internet address will change from “http” to “https” when a purchase is made using a secure connection.

· Make sure your browser is set to the highest level of security notification and monitoring. The safety options are not always activated by default when you install your computer. The most popular browsers include Microsoft Internet Explorer, Firefox and Opera. Check that you’re using a recent version – you can usually download the latest version from these browsers’ websites.

· Always check your statements. Check statements as soon as you receive them. If you find a transaction on your statement that you did not make, contact your bank or card company immediately. Tear up, or preferably shred, any documents that contain information relating to your financial affairs.

· Consider using an Internet-only card. If you regularly make transactions over the Internet consider opening a separate credit card account specifically for these transactions. This would enable you to monitor transactions at a glance and credit cards offer additional consumer protection should anything go wrong.

· Print out your order. When shopping online make sure you get a hard copy of both your order form and the retailer’s terms and conditions. When buying from overseas remember that it may be difficult to seek redress if problems arise, but having all the relevant information will help your bank or building society take up the case if you have any problems.

· Visit the websites www.getsafeonline.org, www.cardwatch.org.uk and www.banksafeonline.org.uk for more information about how to shop and bank safely online

2. Card-not-present (CNP) fraud
A CNP transaction is one made when neither the card nor the cardholder is present at a till point in a shop, such as transactions made over the Internet, telephone, fax or by mail order. APACS has produced best practice guidelines for preventing CNP fraud, available in a number of formats. The publication Spot & Stop Card-not-Present Fraud is available to order from www.cardwatch.org.uk. This site contains an e-learning version of the guide, which is also available to order as a CD-Rom.

3. Verifed by Visa and MasterCard SecureCode
These are e-commerce solutions that enable cardholders to authenticate themselves when shopping online at participating merchants through the use of a private password or code. More information is available at www.visaeurope.com/verified and www.mastercard.co.uk/securecode

4. APACS
APACS is the UK payments association. It provides the forum for the UK's financial institutions to come together on non-competitive issues, to develop banking systems for the future and to provide innovation and developments in payments. It is also the banking industry voice on payments issues such as plastic cards, card fraud, cheques, electronic payments and cash. Card Watch is the UK banking industry's fraud awareness body that works with police, retailers and organisations including Crimestoppers to fight plastic card fraud.

5. Phishing
Phishing is the name given to the practice used by fraudsters who send e-mails at random that seem to come from a genuine online bank or business, in an attempt to trick customers of those companies into disclosing personal security information, typically at a bogus website operated by the fraudsters. You can prevent yourself from becoming a victim of phishing by being wary of all unsolicited e-mails, even if they appear to originate from a trusted source. Although your bank may contact you by e-mail, it will never ask you to reconfirm your login or security password information by clicking on a link in an e-mail and visiting a website. For more information, visit www.banksafeonline.org.uk

6. Fighting back - what is being done to tackle card fraud:
· Chip and PIN has been introduced into the UK by the banking industry and retailers to combat lost and stolen and counterfeit credit and debit card fraud.
· Other types of card fraud, such as identity fraud and card-not-present fraud, are being tackled by retailers and banks through a number of initiatives. These include verifying the cardholder's address and cross-checking a card security code to combat fraudulent transactions made over the phone and Internet; production of training manuals; multi-sector working groups to address practical solutions and research into hand-held card readers that could be used in the future for card-not-present payments.
· UK plastic card fraud facts and figures can be downloaded from www.cardwatch.org.uk

7. About Crimestoppers
· Crimestoppers is the only charity dedicated to solving crimes and taking criminals off the streets. Around 17 people are arrested and charged every day as a result of information given to Crimestoppers

· Since Crimestoppers began in 1988, it has received over 700,000 calls with useful information, resulting in over 62,000 arrests and charges. Over £85 million 0

· .worth of property has been recovered and over £84 million worth of drugs

8. APACS’ Consumer Research
· Tickbox.net carried out research commissioned by APACS to investigate the online shopping behaviour of Britons.
· The sample sizes achieved (2,257 total; 2,104 online shoppers) allows for a strong and credible sample across the regions and/or cities.