Rise in card fraud abroad

Fraud involving UK-issued cards being used overseas has more than doubled in the first six months of the year, according to new research.

While domestic fraud saw a small 4 per cent decrease, card fraud abroad has risen by 16 per cent, a study by uSwitch has found.

The reduction in the amount of domestic card fraud has been attributed to the advent of chip and PIN, with losses at retailers in the UK down by 11 per cent and losses at cash machines down 57 per cent.

"Chip and PIN has clearly been a success in the UK with an 11 per cent decline in card fraud at UK retailers and a 57 per cent drop in fraud at UK cash machines," Mike Naylor, Personal Finance Expert at uSwitch.

He continued: "However, it is disappointing for all parties involved that fraudsters have found another loophole in the system by using counterfeit cards abroad."

Mastercard recently introduced the Paypass system in the UK, whereby customers can use a swipe system with their credit cards in selected stores for items under £10.