§ Mr. RosindellTo ask the Secretary of State for the Home Department what steps the Government are taking to tackle debit and credit card fraud. [15124]
§ Mr. DenhamThe Government take the problem of card fraud very seriously and are currently working closely with the finance and retail sectors and the police to establish and promote best practice in protecting cards and introduce ways of preventing this type of fraud.
One major initiative is the planned introduction of microchips into payment cards to help authentication and the introduction of cardholder verification system using a Personal Identification Number (PIN) code in place of signatures to confirm the user is genuine. This commitment to phase in Chip and PIN was given at the third Home Office seminar on reducing cheque and credit card fraud in July. The banking industry anticipates that the phasing in of Chip and PIN technology by the end of 2004 will eliminate more than 80 per cent. of plastic card fraud.
Another initiative currently being considered is the setting up of a pilot dedicated joint police and industry national cheque and plastic card fraud squad.
In addition to this a working group of police and officials has been set up to consider ways of improving the response to all types of fraud.