NEWS

LONDON, February 06, 2010 – Retail Decisions (ReD), a world leader in payment fraud prevention predicts that online fraud could reach £17.2 million between 1st February and 14th February, representing an estimated 18% year on year increase. Fraudsters will attempt to steal expensive romantic treats such as perfume, flowers and alcohol.

Amorous shoppers spend an average of £154 on gifts for their valentines. Online fraudsters also become more active at this time of year, spending an average of £348 on their loved one(s).

In 2009, ReD saw a 73% increase in the number of diamond rings sold online in the two weeks before Valentine’s Day versus the first two weeks of January. Carl Clump, CEO of ReD says, “Seasonal increases in online spend create greater exposure to the risk of card fraud for retailers. Fraudsters typically increase their attempts during those seasonal periods in an effort to hide amongst the additional genuine shopping volume.”

Carl Clump, CEO of Retail Decisions, continued; “A review of ReD’s 2009 data saw genuine shoppers opt for stores’ own brand Champagne at an average cost of £30 per bottle, whilst a fraudster’s favourite tipple was Veuve Clicquot, at £44 per bottle. In addition, British woman received a bunch of standard red roses at approximately £30, whereas the fraudster’s sweetheart was lavished with a luxury bouquet at double the price.

Fraudsters’ indulgent romantic gestures are not limited to expensive champagne and flowers. In 2009, they also tried to use stolen card details to purchase expensive first class flights to luxury destinations around Valentine’s Day. The travel destination with the highest rate of attempted fraud was the ancient city of Cairo followed by Madrid and Dubai. Conversely, 57% of economy class flights sold online, at this time, proved that New York is the most popular city for legitimate travelers.”

Carl further commented, “Fraudsters should not be underestimated. In 2009 we have forecasted that online, mail order and telephone order fraud cost the nation about £300 million, a major issue for the UK economy. Minimising fraud has always been a priority but, more importantly, the public needs to be protected from becoming victims of this common crime.”

Consumers can avoid the risk of payment fraud by taking the following precautions:

• Report a card lost or stolen the moment you have noticed that it has gone
• Shred credit card statements before throwing them away
• Don’t let your cards or personal documents out of sight and keep them safe, especially when you are making a payment
• Sign new cards immediately
• Report any unfamiliar card transaction that appears on your statement immediately to your card issuer.

Notes for editors:

About ReD
Retail Decisions (ReD) is a world leader in card fraud prevention, payment processing and card issuing. A specialist supplier to the payments industry worldwide, ReD has over 20 years experience in the fraud prevention market. Its blue-chip international clients come from the global telecommunications, retail, travel, petroleum, banking and the broader e-commerce sectors. They include, Air China, Bloomingdale's, Boots, Coles, Comet, Esso, Fedex, John Lewis, Louis Vuitton, Macy's, Sears, Shell, Shoprite, Target, Tesco, Texaco, Travelocity, T-Mobile, Wal-Mart, and Virgin Mobile. The company has offices in Australia, China, Germany, South Africa, United Kingdom, and United States, with representation in India, Korea, Japan, and South America.

More information about ReD please visit: www.redplc.com.