ONLINE GAMBLING firms took the brunt of losses to credit card fraudsters last year, according to data released by APACS, the credit card industry association.

Reports ricocheted around the media last year that card-not-present (CNP) fraud had "rocketed" 44 per cent in the first six months of 2007, to £137 million. The message to retailers and online shoppers was clear: run for the hills.

What anyone failed to consider was what sort of fraud was being committed by these fraudsters. Most of the card scams were being laid on gambling firms. Should that surprise anyone?

As it turns out, the fraudsters were also keen on cheap flights and mobile phones, but the rest of the retail sector had not been hit by much more fraud than the year before. Certainly no where near the 44 per cent everyone was screaming about last year.

According to stats just released by APACS, online gambling firms including the National Lottery lost 61 per cent more to CNP scams in the first half of 2007 than in the same period in 2006. They lost a total of £12.7 million between them.

Travel firms were hit half as much again in the 2007 period as in 2006, while telecoms firms (£11.6 million - mostly mobile phones) lost nearly a third more (£6.4 million )

Mail order and electrical goods retailers, which account for much online business, saw CNP fraud increase only 6 and 3 per cent respectively (£6.7 million and £6.3 million). Online retailers turned over £44 billion last year.

What cannot be denied about those figures everyone was peeing their pants over last year was that fraudsters, finding the newly implemented chip and pin was an inconvenience, started committing their cards from abroad from countries that didn't have chip and pin. Incidences of fraud abroad had doubled to over £108 million .

Stands to reason, though innit? You pick up an iffy credit card, what are you going to do? Buy one of those spanky mobile phones with a web browser, jump on an aeroplane and sit on some beach in the Algarve playing online poker. Sorted.

Clive Hawkswood, CEO of the Remote Gambling Association, was unable to explain the figures. There had been no new developments that would explain why gambling firms should be losing more. And it was difficult to verify the numbers.

"Most companies won't admit when they have suffered this type of attack," he said, but added, "We've not had a major attack for some months."

The RGA reckons online gamblers take about £1 billion a year in the UK, which makes their losses to CNP fraud sound piffling. And take a step back: does anyone have any problem with fraudsters diddling money out of gambling firms? Isn't that the sort of thing they make feel-good crime capers about?

Online retailers, meanwhile, raked in £44 billion last year. µ