Credit Card Fraud Cost Visa Canada 115 Million Last Year
Sep 24 2004 : Fraud on Visa-issued cards in Canada totaled CDN 115 million in 2003, leading Visa Canada president, Derek Fry, to say the card firm is in a “high-stakes technological arms race” to beat the fraudsters. On the basis that this CDN 115 million total is too high for petty card fraud, Visa Canada is to promote chip cards to prevent organized criminals and terrorists cashing in on Canada’s payment system. By introducing the PIN-secured chip cards over the next six years, Visa Canada is seeking to inform consumers that they too can “help push criminals out of this marketplace” and prevent or reduce financial losses to cloned cards, according to recent press reports.
Canada’s total dollar loss to credit card fraud fell to about CDN 200 million in the year to December 2003, down from nearly CDN 227 million at end-1999. Police statistics indicate counterfeit credit card use of Canadian-issued cards to be the largest fraud category, due to criminals skimming cards and transferring the data to blank cards. Lost and stolen cards represented 23 per cent of all card fraud losses, while card-not-present fraud comprised 10 per cent of all losses and fraud on cards not received by the legitimate cardholder (non-receipt fraud) accounted for 7 per cent of all losses, down from 16 per cent in 1992.
Fraudulent applications for credit cards accounted for 4 per cent of all Canada’s card fraud losses in 2003 but the numbers are increasing, as in other world regions. Visa Canada in June 2003 announced a move to chip cards within seven years to reduce fraud levels, with cards and terminals to be upgraded as part of normal replacement cycles. Usage of PIN-secured cards should not be an issue, with Canadian consumers already using PINs to verify debit card payments on the national debit network and 61 per cent of respondents to a Visa survey of January 2003, indicating they would prefer to use a PIN at the POS.
http://www.epaynews.com/index.cgi?su...215212&block=1
Thats a lot of porn site memberships being cancelled :eek:
Wonder if the new chip cards are going to help things in this instance and actually, i wonder how they are going to effect signups to adult sites, if at all.
Regards,
Lee
