Online fraud up 185% with 20,000 fake websites

UK card fraud losses rose 14 per cent in the first half of 2008 to £301.7 million and online losses rose 185 per cent to £21.4 million.

Data from the payments association Apacs show 40 per cent of all card fraud losses were abroad, as criminals stymied by Chip and Pin technology steal card details at cash machines in the UK and use them in countries where the technology is not in force.

Since the introduction of Chip and Pin losses in the UK from have fallen 35 per cent to £47.4 million.

Sandra Quinn, director of communications at Apacs, said: "Criminals continue to target those areas where we do not currently have the security benefits of chip and PIN, causing increases in fraud abroad and phone, internet and mail order shopping fraud.

"Fraud abroad will be made more difficult for criminals to commit as more countries rollout chip and PIN."

The rise in online fraud is being put down to criminals targeting online banking customers through phishing and spyware scams - because the banks’ own systems have proved difficult to attack.

In total 20,000 fraudulent phishing websites were set up in the first half of 2008.

"To help tackle online fraud, we continue to urge shoppers to: protect their computer with up-to-date anti-virus software; only use secure websites; and register with MasterCard SecureCode and Verified by Visa when prompted – as these systems make cards more secure when shopping online," said Ms Quinn.