Fraud using payment cards issued overseas is on the rise – and agents could become prime targets, the Prevention of Fraud in Profit (PROFiT) group has warned.
According to the latest figures from Financial Fraud Action (FFA), foreign-issued payment card fraud cost UK retailers £81.1 million in the first six months of this year – up 36% on the same period last year.
Meanwhile, all other forms of payment card fraud fell by 23% to £232.8 million, including card-not-present fraud, which dropped for the first time ever by 18%.
PROFiT chairman Barry Gooch said with the success of chip and PIN, fraudsters were resorting to using cards from countries such as the US that do not yet use chip and PIN technology.
“I would urge all travel companies to reassess and improve their methods for taking payment in the light of this,” he said.
ABTA head of finance Mike Monk said: “If a card has been issued overseas it does not necessarily mean it is fraudulent, but you do have to take slightly more care.
“First you have to ask yourself why has the person offered an overseas card; is he an overseas resident? If not why does he have an overseas card? You don’t have to be suspicious, just do more checks.”
Monk also urged agents to read his Best Practice Guide for Merchants in the Travel Sector, which contains advice on how to avoid being stung by fraudsters.