Fraud prevention information for Card-not-Present (CNP) transactions

Card-not-present fraud prevention information for retailers

Card-not-present fraud prevention information for cardholders

Card-not-present transactions are those where neither the card nor the cardholder are present at the point-of-sale, eg orders by mail, telephone, fax or the Internet.

These types of transactions are becoming increasingly popular with customers - unfortunately they are also appealing to criminals. Because the retailer has no opportunity to physically check the card or the identity of the cardholder, there is always some risk. In the last year this type of fraud cost the UK £110 million.

The crime involves using fraudulently obtained card details to make a purchase. Usually the details are taken from discarded receipts or copied down without the cardholder's knowledge. As with counterfeit fraud, the legitimate cardholder may not be aware of the fraud until a statement is received showing transactions that the legitimate cardholder did not make.

Card-not-present fraud losses on UK-issued in the 12 months to June:

2003 - £109.6 million
2002 - £108.0 million
2001 - £82.2 million
2000 - £52.7 million
1999 - £18.0 million
1998 - £11.9 million

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