§ Mr. SheermanTo ask the Secretary of State for the Home Department (1) how much he estimates businesses have lost through credit card fraud committed(a) in general transactions, (b) over the internet and (c) over the telephone in each year since 1990; [164842]
(2) what police help is offered to businesses who are victims of fraud of less than £500 000; and whether the police are obliged to take action in the case of fraud involving less than £500,000; [164843]
(3) what action his Department is taking to combat and prevent credit card fraud committed over the internet; [164844]
(4) if he will introduce a national initiative on internet and credit card fraud to increase awareness amongst the police and the general public about combating fraud; [164845]
(5) what support his Department is offering to businesses who are repeatedly targeted by fraudulent use of credit cards over the internet. [164846]
§ Ms BlearsThe Government do not collect figures on the cost of credit card fraud The Association for Payment Clearing Services (APACS) has estimated the total cost of losses due to credit card fraud (as reported by card issuers) over the last 10 years as:
£ million 1994 96.8 1995 83.3 1996 97.1 1997 122.0 1998 135.0 1999 188.4 2000 317 2001 411.5 2002 424.6 2003 402.4 (Specific figures for costs to businesses are not available)
The decision on whether and how to investigate alleged criminal offences is an operational matter for the relevant chief officer of police. The decision will take account of national and local policing priorities as well as the resources available.
We have recently boosted the resources available to police to tackle fraud. In the recent Green Paper on "Policing, Building Safer Communities Together", we signalled our intention that some forces should develop expertise in certain specialist types of investigation and play a lead role in those areas. The City of London Police will become the first such lead force tackling fraud. The Home Office and the Corporation of London have each agreed to contribute £1 million per year towards the cost of an expanded City of London Police fraud squad. The Home Office will also meet capital start-up costs of the new unit.
322WThis arrangement will allow the City of London Police to significantly expand its fraud squad enabling it to take a lead role in the investigation of fraud in London and the south east. We will need to assess the additional achievements that result from providing these new arrangements before considering any further additional funding.
In October 2003 the National Hi-Tech Crime Unit (NHTCU), APACS (the Association for Payment Clearing Services) and the BBA (British Bankers' Association) issued a checklist for UK consumers to help protect themselves against the Internet fraudster. The Home Office has also recently launched a website to combat internet fraud. The 'e-tailing mini site' forms part of the Crime Reduction website and provides information to help both businesses and consumers protect themselves when using the internet.
The Home Office is also represented on an APACS led Steering Group which aims to tackle 'Card Not Present' (CNP) fraud. This includes fraud over the internet. We support practical measures being introduced by the industry to increase levels of security for internet transactions. These include Address Verification Services (AVS), Card Security Code (CSC), Mastercard Secure Code and Verified by Visa. There is also a manual ("Spot amp; Stop Card Fraud Retailer Pack") resulting from the CNP Steering Group's Work which aims to educate merchants on the dangers of CNP fraud and the steps which can be taken to prevent it.
We are about to publish, jointly with APACS, a leaflet for members of the public to raise awareness about safe credit card use. The leaflet will include a section on using cards safely over the internet. Supplies of the leaflet are being sent to all police forces in England and Wales.
The Home Office does not operate any specific support schemes for repeat victims of credit card fraud, however the schemes outlined above to tackle CNP fraud are already making a significant impact in preventing this type of fraud.