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NEWS European card fraud losses hit record high
this time for card fraud losses across the region which have hit a record €1.8bn in 2016. And within Europe, the UK has seen the highest losses at £618m.
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This is a 9% rise over 2015 and beats the previous peak in card fraud set in 2008 before the introduction of chip and PIN got it back under control.
urope remains in the headlines this month,
Analytic software firm FICO today released an interactive map of European card fraud, which details card fraud losses for 19 European countries.
Card not present (CNP) fraud has risen from 50% of gross fraud losses in 2008 to a mountainous 70% in 2016.
Martin Warwick, FICO’s fraud chief in Europe, said today that the growth in online spending and CNP fraud has brought new challenges for banks, as criminals move away from chip & pin to a less risky channel: “Finding and stopping fraudulent transactions just gets tougher. Spotting the ‘needle in a haystack’ requires new behavioural analytics and artificial intelligence, combined with enhanced information from outside the traditional data contained within a purchase.”
France tops the chart – again
Fraud basis points is a standard measure of card fraud severity and can show how a bank or a country is doing relative to others. On this standard 8.9 basis points is equivalent to 8.9 cents per €100. It works the same in any currency and provides an indicator of the fraud-to- sales ratio.
France has the highest basis points at 8.9 in the regional group of 19 European countries but has a lower level of card payments than the UK, which has twice as much actual spending and has seen a sharper year-on-year rise in fraud losses.
According to FICO’s data, UK and France account for over 70% of the total losses for Europe. Adding the next 5 in terms of losses — Germany, Spain, Russia, Italy and Sweden — takes us well over 90% of the total losses.
Fraud trends typically follow the spending patterns within country and criminals concentrate their resources at the weakest point of any system. In France, Identity Fraud constitutes 62% of the fraud, whereas in Spain counterfeiting makes up 62% of card fraud.
www.ibsintelligence.com © IBS Intelligence 2017
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