Rise in credit card fraud predicted for 2009

By UK CreditCards.com

Rise in credit card fraudMost financial services firms believe that credit card and other types of electronic fraud will increase this year, according to a new study.

Research by risk management software provider Actimize found that more than four out of five companies expect fraud to increase in 2009. Additionally, seven out of 10 reported an increase in credit card, debit card and cash machine fraud in 2008, compared with the previous year.

Amir Orad, Actimize executive vice president, suggested that companies should bring in real-time fraud prevention technology, which is capable of identifying fraudulent transactions as they happen. "Real-time analysis and blocking has historically been very challenging and either didn't work or resulted in a high false positive rate due to technology limitations," he said.

"It is certainly our own experience and the belief of the research respondents that today's modern fraud solutions can be very efficient at real-time prevention and can provide a major performance lift."

Just a quarter of the respondents to the survey said that they were able to analyse and stop fraudulent transactions in real time.

Published: 14 May 2009