Last week, the Association for Payment Clearing Services (APACS) launched its Card Security Week campaign to raise awareness among consumers and retailers of card- not-present (CNP) fraud.
Accompanying the campaign was a report into the amount of money being siphoned off by fraudsters from sales made over the Internet, phone or by fax.
The launch was greeted by coos of approval from technology companies that supply smart cards and payment systems to retailers.
Payment processing software firm Retail Logic represented the views of many suppliers when a spokesman said: 'It's great that APACS has highlighted this problem. Retailers are always surprised to learn how much money is being lost to fraudsters.'
Smartcard specialist Consult Hyperion welcomed the initiative as a timely reminder to retailers and consumers of the dangers of CNP fraud. However, the company said the present safeguards did not go far enough.
'It's an arms race that no-one can win. The bad guys will always find a work-around. We would like to see credit card companies supply their customers with readers, so that consumers can prove they have the card in their possession. We could easily see readers being used in home shopping within a year.'
However, one supplier has accused APACS of skewing the debate. CNP fraud prevention specialist 3rd Man blasted the organisation for focusing too heavily on card validation schemes, and accused it of scaremongering consumers.
'The banks need to stop concentrating on payment, and highlight that it's about theft. Retailers are able to manage their own risk, as long as they not only verify who the customer is, but what they are buying and where it is being delivered,' 3rd Man managing director Paul Simms said.
One of the security methods, which APACS is urging retailers to adopt, is CVV2. This scheme relies on a second number, printed on the back of the card, within the signature panel.
Simms claimed that CVV2 would not be a deterrent to determined, organised fraudsters, who will eventually find a way around it.
'The lip-service APACS is paying (to CNP security) is not helping anyone,' he said.
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