Card fraud losses slide as banks and consumers improve their protection

The cost of fraud in Scotland fell 7 per cent to 10.6m in 2010, dwarfed by record losses of 17.9m in 2008 but still higher than the 2006 level.

The figures also show a 22 per cent plunge in losses from online fraud, which fell to 46.7m last year. The group said consumers were taking better action against online fraud by keeping their computers protected with up-to-date anti-virus software. The decline in online losses came despite a sharp rise in "phishing" attacks, where victims receive fraudulent e-mails apparently sent by legitimate firms in an attempt to obtain personal or financial details.

Cheque fraud also fell significantly, due largely to a long-term drop in cheque usage. But there was an increase in phone banking fraud as more people fell victim to "cold calls" conning them into disclosing personal security information.

Melanie Johnson, chairwoman of the UK Cards Association, said: "The cards industry is greatly encouraged by the major decrease in card fraud losses for a second successive year, but we will not be easing off our efforts."

The association pointed out that card and banking fraud account for just over 1 per cent of total fraud losses in the UK, which the National Fraud Authority (NFA) recently estimated at more than 38 billion a year.

Detective Chief Inspector Paul Barnard, head of the Dedicated Cheque and Plastic Crime Unit, based in London, warned against complacency.

He said: "By taking simple steps, such as shielding our PIN with our free hand whenever we enter it, particularly at cash machines; being wary of unsolicited e-mails or calls; and making sure that our computers have regularly updated anti-virus software in place, we can make life harder for the criminals".