Apacs is urging consumers to do their bit to stamp out online card fraud by signing up to banks' card protection schemes.
The Mastercard SecureCode and Verified by Visa schemes were developed to make online shopping more secure by creating a link between the card issuer and the card holder so that unauthorised usage can be prevented. Around 10 million UK cardholders have already registered with one or both of the schemes.
Retailers consider card not present (CNP) transactions to be high risk, so as more sign up for both systems it is anticipated that they will expect their customers to have registered as well. This is because retailers using the schemes are not liable in the case of fraudulent transactions.
According to figures from Apacs, CNP fraud currently outstrips most other financial crimes. CNP fraud rose 16 per cent last year to total £212.6m and accounts for 49 per cent of card fraud, according to Sandra Quinn, communications director for the payments association.
The growth in this crime is fuelled by the number of people who shop and bank online. According to the IMRG, the UK's internet shopping market is estimated to be worth more than £42 billion this year, with more than 26 million people set to buy online. This industry body for e-commerce predicts that the average web shopper will spend £1,615 during 2007.
Both Verified by Visa and MasterCard SecureCode are based on the same technology and work in the same way, despite the different brand names. Consumers can register for the services when they are given the option to do so whilst making a purchase online, at the website of the bank or card company that issues their card or by contacting the issuer directly.
Home Office Minister Vernon Coaker said: "Shopping online is convenient for c onsumers and retailers alike, but although the internet offers valuable opportunities for law abiding citizens it also presents opportunities for fraudsters.
"The key to tackling online fraud is prevention, which is why the Government supports industry initiatives such as Verified by Visa and Mastercard SecureCode, which are designed to make online transactions even more secure.
"I am pleased to see the industry introducing such measures and urge cardholders to sign up to these protective schemes."
To help boost general public awareness and understanding Apacs has launched a consumer advice guide explaining the registration process and security benefits in more detail.
