FCA to tackle contactless card fraud

John Griffith-Jones, Chairman of FCA and Payment Systems Regulator, has written to Rt Hon. Andrew Tyrie MP, Chairman of the Treasury Committee, about contactless card fraud.

In 2015 there was £2.5m of reported contactless fraud, out of £7.75bn of contactless transactions.

In his letter, Griffith-Jones highlights the key risk as merchants who process payments ‘offline’ (ie batch payments being processed over a period of days by retailers).

FCA is exploring various options with the likes of the BBA, including:

  • removing any onus on customers to identify fraudulent transactions
  • technical enhancements to reduce the likelihood of post-cancellation contactless fraud