Financial Conduct Authority to tackle contactless card fraud

• Chairman of the Financial Conduct Authority writes to Mr Andrew Tyrie relating to Contactless payment fraud, dated 2 February 2017
• Inquiry: Work of the Payment Systems Regulator inquiry
• Treasury Committee

Chair's Comments

Mr Tyrie said:

"As things stand, in order to mitigate the risk of fraud, customers are expected to comb through their bank statements months after they have instructed their banks to block their lost or stolen cards. That seems unreasonable. The Treasury Committee has urged the FCA to sort this out.
 
So the package of measures to resolve this problem, which the FCA proposes in their letter to the Committee, is welcome.
 
One of the FCA's operational objectives is to "secure an appropriate degree of protection for consumers". The Committee will do what it can to hold the FCA to it."

Committee Member's comments

Rachel Reeves MP, a member of the Treasury Committee, said:

"The security flaws that allow fraudsters to use contactless cards even after they have been cancelled need to be tackled urgently.  Customers are in the unacceptable situation that they are still vulnerable to fraudulent transactions - despite reporting their cards lost or stolen.
 
I welcome the news that the FCA is looking at ways of dealing with the problem. 
 
The current chaotic system needs to be reformed to minimise the risk to consumers of fraudulent transactions. Bank customers must have full confidence the system works and that their money is safe.  That's not the case at present."

Further information

• About Parliament: Select committees
• Visiting Parliament: Watch committees

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