Bernard Durkan (Kildare North, Fine Gael)
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Question 171: To ask the Tánaiste and Minister for Justice, Equality and Law Reform the extent of credit card fraud at present; if measures have been taken throughout the banking and finance sectors to prevent such fraud; and if he will make a statement on the matter. [39566/06]

Michael McDowell (Dublin South East, Progressive Democrats)
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I have been informed by the Garda Authorities that approximately €13 million in respect of payment cards was lost to the financial institutions in 2005. Of this, €4 million related to Automated Teller Machines (ATMs). Up to 2002, this type of fraud had been increasing by approximately thirty per cent annually but there have been slight decreases since then. It is anticipated that the total loss to the industry will be in the region of €14.5 million for 2006. In relation to ATM fraud specifically, there has been a dramatic decrease in 2006 with a drop of sixty five per cent on the previous year. I understand that this substantial decrease is in part attributable to the arrest and conviction of a number of criminal gangs which had been operating in this jurisdiction.

With regard to specific measures taken by the banking and finance sector to counteract payment card fraud, action has been taken by the Irish Payments Services Organisation (IPSO), the umbrella body for the Irish payments industry, to tackle this problem. These actions include co-ordinating the Irish implementation of the Chip and Pin migration programme as part of a Europe-wide anti-fraud initiative. The Deputy might like to note that it will no longer be possible to by-pass chip and pin from March 2007. IPSO actively promotes awareness of the problem through media appearances, educational initiatives and other channels.

In addition to this, the Credit Card Forum (CFF), consisting of the senior fraud staff from each of the banks and financial institutions meets on a regular basis under the auspices of IPSO Card Services. One of this group's prime responsibilities is to control the cost of plastic card crime by facilitating major anti-fraud initiatives and preparing for possible future crime trends that may affect the card industry. This work is carried out with co-operation from national and international card schemes, the Garda Bureau of Fraud Investigation and retail and consumer groups.

While every attempt is made to make the public aware of credit card fraud through the use of advertising campaigns, one ongoing aspect of the process of providing information is a very useful website run under the auspices of IPSO Card Services. The www.safecard.ie website provides advice and information to cardholders and retailers who are looking to reduce or prevent card fraud in their places of business. An Garda Síochána continues to monitor trends to ensure that law enforcement activities are in place to tackle crimes of this type.