Brits puzzled by unidentified card transactions

British cardholders were unable to account for more than £10.8bn worth of transactions last year, according to security company CPP.

A study compiled for the company, which offers card protection services, found more than a third of those surveyed were unable to identify all transactions leaving their accounts; and one in 10 were unable to identify a fifth of their monthly transactions.

Yet despite a quarter (28 per cent) putting these transactions down to fraud, people are failing to check their statements regularly and when they do, more than half fail to investigate unidentifiable transactions unless they are for £21 or more.

CPP said this kind of complacent behaviour is leaving people exposed to fraud, particularly to card-not-present (CNP) fraud which, according to UK payments association Apacs, now accounts for 54 per cent of all card fraud.

CNP fraud is where criminals order goods over the phone, internet or mail order using stolen card details and Apacs reported that losses rose 13 per cent in 2008, up from £290.7m in 2007 to £328.4m.

Fraudsters often make numerous small transactions of a few pounds only and Michael Lynch, identity fraud expert for CPP, said: "Card holders really need to be on their game to protect their finances.

"Criminals do benefit from complacent attitudes to card security and it is not uncommon for fraudsters to make small transactions of a few pounds to 'test the water' before going on to purchase something expensive like a flatscreen TV or laptop."

The study of more than 2,000 cardholders carried out for CPP in March found the average total of unidentified transactions per cardholder is £15.38 a month and the average number of transactions is 1.3 per cardholder per month.