Question:
7 Dr. Upton asked the Minister for Justice, Equality and Law Reform if he will give details of the level of credit card fraud; and if he will make a statement on the matter. [11989/00]
Ceisteanna–Questions. Priority Questions. - Credit Card Fraud.
I am informed by the Garda authorities that the statistics for credit card fraud in this jurisdiction are as follows: between 1 January and 31 December 1999, 239 persons were arrested for credit card fraud, of whom 211 were charged. Between 1 January and 31 March this year 40 persons were arrested for credit card fraud, of whom 32 were charged. It is estimated that the average annual cost of credit card fraud during the period 1990-98 was approximately £1.4 million.
Is there an obligation on credit card companies to report credit card fraud within or without this jurisdiction? Is there monitoring of such fraud by agents of the Department? As we move gradually towards e-commerce are proposals being considered in the Department to protect customers who will use credit cards on the Internet from fraud?
In the case of fraud perpetrated on the Internet or in an on-line environment the existing set of laws supplemented by future legislative measures, as appropriate, will be used to investigate and prosecute such offences. I understand section 26 of the Electronic Commerce Bill, 2000, creates new offences in relation to electronic signature fraud and that the fines for such offences could amount to £500,000 or five years in prison. One would not want to be depending on the minimum wage to pay a fine of that nature. I am informed by my colleague, the Tánaiste and Minister for Enterprise, Trade and Employment, that credit card issuers provide certain protection for cardholders who are the victims of fraud. Where a consumer reports the theft of his or her card to the credit card issuer a block is put on further use of the card. Where a transaction is entered into improperly before the theft is notified to the credit card issuer the consumer will normally be expected to bear a certain amount of the cost. I understand most credit card issuers monitor the use of their cards.
Do they notify the Garda Síochána?
Where an unusual pattern of usage is noted they would normally contact the credit cardholder. Likewise, I understand retailers are required to comply with certain terms and conditions when accepting credit cards from consumers.
Has the Minister investigated this area in light of the Government's declared intention to establish Ireland as an e-commerce centre? Has he had discussions with the Garda Commissioner on specific training for a detective unit to monitor the safety of e-commerce to ensure the Government's stated objective will not be eroded by criminal activity?
I have outlined the provisions of the relevant Act. The Garda bureau of fraud investigation is the specialist agency with responsibility for the investigation of fraud related crime nationally. There is a cheque-credit card fraud unit within the bureau which concentrates on the more serious cases of cheque and credit card fraud with less serious cases being referred to local Garda stations for their attention. I understand that since early 1998 the bureau has had to deal with complaints of fraud involving cheques and credit cards by non-nationals. As with all other complaints of credit card fraud these complaints are fully investigated by the Garda Síochána.