‘Old-fashioned’ fraud on the rise

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Criminals are resorting to old-fashioned cheque and telephone scams as fraud losses on UK credit and debit cards reached a 10-year low, figures showed.

Card losses fell by 7 per cent year on year to reach £341m in 2011, the lowest figure in a decade following a three-year reduction of nearly 45 per cent, Financial Fraud Action UK said.

Meanwhile, online banking fraud losses fell 24 per cent to £35.4m in 2011, despite a surge in phishing attacks which rose by 80 per cent year on year to reach around 111,000 in 2011.

But telephone banking losses increased by around a third and cheque fraud losses saw a 17 per cent rise in 2011 as more cheques were simply stolen and altered, the figures show.

Financial Fraud Action UK said the continued upgrading of chip cards has played a major part in cutting fraud.