Over £10 billion was lost in the last year as a result of payment fraud.
Research by CPP found that a third of cardholders fail to identify all transactions leaving their bank accounts, with the average person not being able to identify £15.38 a month. It also found that out of the cardholders that cannot identify all transactions, nearly one in ten are unable to identify over a fifth of transactions on their monthly statements – with a quarter putting it down to fraud.
Out of those that can't identify all transactions, half don't investigate unidentifiable transactions unless they are for £21 or more. This is despite the majority (70 per cent) of all cardholders thinking that fraud will rise due to the recession, as people resort to desperate measures.
While some cardholders acknowledge that unaccountable transactions may be down to forgetfulness, many are certain it's because they've been a victim of fraud. In other instances, cardholders blame transactions they cannot account for on cheque payments not stating the recipient's name, or trading names being different from the registered company name.
Michael Lynch, identity fraud expert at CPP, said: “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.
“It's particularly concerning that cardholders are unable to identify exactly where money is going each month from their bank accounts. It's all too easy to become lax with our card security as we use credit and debit cards more and more. But it's essential that we regularly, and thoroughly, check our statements to not only stay on top of our finances, but to ensure the early detection of fraud.”