Stolen bank card fraud in Britain has jumped to its greatest level in eight years.
Cards that were lost or stolen in the UK resulted in losses of £58.9m last year, the largest figure since 2006.
Losses from all types of card fraud rose by 16% in 2013, to £450m.
According to the UK Cards Association, many people are being “distracted” whilst using their cards in shops, bars, and cash points by thieves.
Typically they will have a paper thrust in front of them, asking for directions. While they are distracted, their card is taken, sometimes so quickly that it appears the cash point has kept it. Sharp-eyed thieves will have already observed the PIN number having been entered.
At the same time, telephone and internet fraud soared by 22% last rise hitting £301.1m. This now accounts for 75% of all card fraud.
One reason, said the UK Cards Association, was the huge growth in online shopping, with the UK now Europe's leading online retail economy.
It said enhanced Chip and PIN security were forcing criminals to change tactics.
Criminals are constantly seeking ways to trick people to give out their bank account details in what is called “vishing” attacks.
One technique is to pose as a bank official and phone an individual claiming that a suspicious payment has been charged to them. They may even invite the person to ring back to confirm.
Even though many people put the phone down, and call their bank back, the fraudsters often stay on the line. Since consumers think they are talking to their bank, they frequently offer their passwords or PINs.
Criminals have even send couriers to a victim’s home to pick up their cards.
