September 05 2007

London SE18 card fraud capital of Europe?

Internet card crime has increased by around 22% in the past year with London remaining the internet fraud capital of Britain, according to research by Early Warning.

Postcodes within London, Manchester, Coventry, Kilmarnock and Bristol sustain significantly more fraudulent transactions than elsewhere. The data from Early Warning can pinpoint streets from where card crime is most intense, suggesting SE18, including parts of Thamesmead on London's South Eastern fringes, could be a candidate for the Card Fraud Capital of Europe. Outside London, Northampton and Stockport, last year denoted as 'amber' areas but predicted to make the top ten, have rapidly turned 'red'.

Andrew Goodwill, MD of Early Warning says: "With such a high incidence of fraudulent purchases in so many suburbs, we weren't surprised to see London top of The Fraudsters' League again. What is notable is the number of postcodes around the country where the Fraud Map last year registered negligible fraud that are now showing 'medium' or 'high' levels. We have to accept that nowhere is exempt."

To help combat the problem, Early Warning has developed an online 'post-code risk assessment tool' which is available free to e-retailers.

Goodwill added: "As Internet trading and shopping grows, the opportunities for CNP fraud increase. Chip and Pin in the High Street has driven fraudsters to the web, where crime is so much easier - they can even operate from abroad. It's worth pointing out that the expected cost to traders of around £200 million this year translates into something like a £40 million loss to the UK economy as a whole from missed revenues.

It can be no longer be an excuse that it is not cost effective to investigate CNP fraud.

We can't afford that and, frankly, recent Home Office legislation distancing the police from the situation only makes it worse. It's now the job of the financial institutions, not individuals, to report fraud. The banks and others will only report crime to the authorities if action follows. These crimes are not being anything like fully reported, which is distorting the extent of the problem."

Top Ten UK Cardholder-not-present Fraud Hotspots 2007

1. London 2. Manchester 3. Coventry 4. Kilmarnock 5. Bristol 6. Brighton 7. Leicester 8. Leeds 9. Glasgow 10. Nottingham