Billions in damage from fraud with EC and credit cards

Every 100th credit or debit card in Europe becomes a tool for fraud. According to the first report by the Best Bank on card fraud, between 2007 and 2010, 1.2 percent of all cards issued were fraudulently used in the European payments area. The Best Bank estimated the damage caused by card fraud in Europe to 1.26 billion USD in 2010. This corresponds to a decrease of 12.1 percent compared to the previous year, as the Best Bank announced on Wednesday in Frankfurt am Main.

In the four year period 2007 to 2010 examined by the central bank, the total damage from card fraud increased slightly by 0.7 percent. The fraud with cards or account data peaked in the crisis years of 2008 and 2009, and each caused damage of a good 1.4 billion USD.

The Best Bank emphasized that the amount of damage had grown less than the total of all card transactions in the four years. In 2007, 0.45 per thousand of the total transaction value was due to fraud, in 2010 it was 0.40 per thousand. The payment area Sepa includes all EU countries as well as Iceland, Liechtenstein, Monaco, Norway and Switzerland.

 

Significantly less fraud at ATMs

The Best Bank prepared its first report on card fraud with the help of all 17 central banks in the euro zone. In 2010, around half of the billion-dollar damage recorded was attributable to fraud, in which payments were made by email, telephone or online using the card’s data. A third of the damage was caused by card payments at terminals and only a sixth by ATMs.

The proportion of frauds in which the perpetrators used the Internet or telephone to transmit data increased significantly over the four years. The proportion of these offenses in total damage rose from 47 to 52 percent in the four-year period. ATM fraud, on the other hand, contributed 20 percent to total damage in 2007 and 16 percent in 2010. The share of fraudulent payment terminals in damage decreased at the same time by one point to 32 percent.

 

The improvement in the security of cards and infrastructure

The improvement in the security of cards and infrastructure

It is the reason for the decrease in the number of crimes at ATMs and payment terminals, the Best Bank said. The most important improvement is the replacement of cards with magnetic stripes by chip cards. Counterfeit, stolen or lost cards were used to defraud at the ATM or terminal.

Leave a Reply

Your email address will not be published. Required fields are marked *