NI card fraud down 12% last year

Chip-and-pin cards contain an embedded microchip

Card fraud in NI dropped 12% last year following the widespread take up of chip-and-pin technology.

The Association for Payment Clearing Services said the amount lost in 2006 was £700,000, compared with £800,000 the year before and £1.1m in 2004.

"Chip and pin has had a hugely positive effect on fraud losses over the counter in UK shops and stores," said Sandra Quinn of Apacs.

In the UK overall, the amount of money lost to card fraud in 2006 fell by 3%.

Apacs said there was a big reduction overall in fraud on lost or stolen cards.

Fraudsters

It said fraudsters stole £428m from banks, other lenders, retailers and individuals using credit, debit and store cards.

But losses on phone, internet and mail-order sales - where the card cannot be checked physically, but fraudsters use the real card number - went up by 16% to £213m.

Chip-and-pin credit and debit cards contain an embedded microchip, and purchases can be verified in shops by inputting a code rather than signing a receipt.

Since February 2006, retailers have been allowed to refuse to accept a card if the cardholder does not know their personal identification number.