§ Mr. GibbTo ask the Secretary of State for the Home Department (1) what assessment he has made of the quantity of credit card fraud on the internet in 2003; [157094]
(2) what measures he is undertaking to counter credit card fraud on the internet; [157098]
(3) what discussions he has had with the Association for Payment Clearing Services regarding credit card fraud on the internet; [157099]
(4) for what reason he has withdrawn funding from the Dedicated Cheque and Plastic Crime Unit; [157118]
(5) what assessment he has made of the amount of credit card fraud on the internet following the rolling out of chip and PIN across the United Kingdom; [157119]
(6) what his assessment is of the effect of internet credit card fraud on the (a) funding of terrorism and (b) proliferation of illegal drugs. [157120]
§ Ms BlearsThe Government do not routinely collect figures on the cost of credit card fraud, but the Association for Payment Clearing Services (APACS) estimates the cost of internet fraud in 2002 (the most recent figures available) to be £28 million accounting for 7 per cent. of all card fraud losses.
The measures taken by Home Office to counter this include a recently launched website to combat fraud over the internet. The 'e-tailing mini site' forms part of the Crime Reduction Website and provides information to help both consumers and businesses protect themselves when using the internet.
The Home Office also participates in an APACS led Steering Group 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 which are already making a significant impact on CNP Fraud. A manual ("Spot and Stop Card Fraud Retailer Pack") resulting from the CNP Steering Group's Work provides advice to merchants on the dangers of CNP fraud and the steps which can be taken to prevent it.
1027WThe Dedicated Cheque and Plastic Crime Unit (DCPCU) was set up as a two-year pilot in April 2002. The future of the Unit is currently under consideration. A decision about the future of the unit when the pilot ends in April will be made shortly.
It is not yet possible to make a realistic assessment of any likely increase in internet fraud following the introduction of Chip and PIN but the industry is taking measures, as outlined above, to minimise the risk.
As with other types of crime some of the proceeds of internet credit card fraud may be used to finance other forms of criminal activity. The extent is not known.
§ Mrs. Iris RobinsonTo ask the Secretary of State for the Home Department what information he has collated regarding altered levels of ATM fraud where the chip and PIN credit card system is used exclusively. [157380]
§ Ms BlearsI understand from the Association of Payment Clearing Services that the chip and PIN system is not used exclusively anywhere in the world. We cannot therefore draw on experience to say what may happen in terms of possible fraud migration to ATMs once Chip and PIN is fully implemented in the United Kingdom.
The upgrading of cash machines to chip and PIN technology is more secure because the user needs both the genuine card and the PIN. This is a major improvement on the magnetic stripe and PIN system where a fraudster could have used the PIN with a counterfeit card.