April 09 2007

Identity fraud and card crime raise concerns in retail

Retail fraud managers have expressed concern about the effectiveness and clarity of national identity fraud reporting procedures.

The Government's recently published National Fraud Review calls for the establishment of a National Fraud Reporting Centre to enable businesses and consumers to "fully engage with law enforcement when fraud has taken place". The Metropolitan Police are reviewing the concept of a National eCrime Co-ordination Unit to co-ordinate a national policing response to e-crime.

Nigel Evans MP, and Chairman of the All Party Parliamentary Group on Identity Fraud, told delegates at the latest 192 Prove-ID fraud forum: "Identity fraud is making a victim of consumers and businesses alike. The latest research from the Association of Chief Police Officers highlights the extent of this problem showing that fraud costs the UK £13.9 billion a year. We can all play a part in beating back the fraudster - consumers, business, financial institutions, the police and government. Education is the key, and detection and enforcement is something retailers can certainly help drive."

Andrew Goodwill, Managing Direct of fraud solutions provider Early Warning is worried about victims of card fraud being told to report the crime directly to their bank or credit card company, which will then make reports en masse to a central police reporting point. "As we know if it is an internet merchant who has been defrauded, he picks up the bill, so there is no incentive for the banks to get involved," he commented.

He asks whether the industry will be able to trust the crime figures? "If the banks don't report all card fraud, simply writing some of it off, the result will be a distortion of the extent of credit card crime."

Emma Herrod