As Croydon's retailers prepare for a busy Christmas season, they are being warned about the threat of credit card fraud which has cost them nearly £2.5 million in 2001.

A record £900,000 was spent in the borough by counterfeiters in the year ending August 2001 and a total of £2.5 million was lost on general card fraud.

Croydon's retail staff have been targeted in a national anti-fraud campaign because gangs of drug trafficking credit card counterfeiters have been forcing retailers into fraudulently swiping cards.

A shocking study by the Association for Payment Clearing Services (APACS) pits the borough among the eight worst hit places in the UK for card fraud.

Although APACS stresses the rise (41 per cent) is partly due to a surge in credit card use, the association also warns that staff are being bribed into using discrete "skimming" devices to extract card data for multiple reproduction.

Melanie Hubbard of Card Watch said: "Highly organised criminals bribe or threaten people working in petrol stations, restaurants and shops to skim customer cards for them."

Banks and credit card companies hope a new method of data storage involving a hack-proof chip will be in place by the end of 2002 and card crime will be slashed by 2004 because pin numbers will be used to identify cardholders.

Although police, banks and retailers are rallying to set up a national police and fraud squad, shoppers and staff can help by reporting fraud to Crimestoppers on 0800 555 111, where a reward of £500 will be given for information leading to a conviction.

Croydon Against Shop Theft (CAST) recently held an anti-fraud training day in partnership with APACS and Card Watch for retailers, hoteliers and restaurants, identifying the characteristics of fraud, cloned and skimmed cards and how to alert colleagues and the credit card clearing systems.

A spokesman for Croydon Marketing & Development said the training has urged retailers to contact them on 020 8686 2233 with a view to further sessions.

November 21, 2001 16:00