Online credit card fraud specialist Early Warning has launched a petition on
No 10's website calling on the Government to reverse a Home Office decision to
change reporting procedures for online card fraud.
The change, which came into force on 1 April, means people no longer report
cheque or card fraud to the police. Anyone who is a victim of this type of crime
is now being told to report it to their bank or building society only.
The
Home Office told Computeractive, when it
broke
the story back in February, that the changes brought in under the Fraud Act
2006 would make it easier for consumers to report online fraud.
They will still be refunded by the bank unless it can be proved they were
negligent with their card details.
A Home Office representative said: "Police forces at present will often not
confirm a crime has taken place before they have had this confirmed by the
financial institution that has issued the card …[making] financial institution
the first point of contact [is] removing an unnecessary layer of bureaucracy and
making it easier for customers."
Online
payments organisation Apacs said banks will still ask the police to
investigate large cases of credit card fraud.
However, after we ran the story, we received phone calls from serving police
officers, who told us they had no idea this change in reporting procedure was
going to take place and they expressed deep concern.
This concern was also echoed by security companies such as Early Warning. It
believes that because it will now be up to financial institutions to report
these crimes to the police, crime figures will not truly reflect the seriousness
of the crime.
Andrew Goodwill, managing director of
Early
Warning, said the move is downgrading card fraud from a crime to an industry
problem. He queried whether the banks would have the incentive to report these
crimes to the police.
The petition
asks the Prime Minister to instruct the UK Police to again be part
of the reporting procedure and actively investigate credit card fraud / online
auction fraud.
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