Card fraud in Europe rises 15% in 2012


by CBR Staff Writer| 26 February 2014

About €1 in every €2,635 spent on credit and debit cards was lost to fraud.

Card fraud in the Single Euro Payments Area (SEPA) reached €1.33bn in 2012, a 14.8% increase compared to the previous year, driven by higher internet fraud, according to a report from the European Central Bank (ECB).

About €1 in every €2,635 spent on credit and debit cards issued in the SEPA region was lost to fraud, while fraud share compared to the total value of transactions remained below the levels recorded between 2008 and 2010.

Share of fraud represented 0.038% of €3.5 trillion in transactions in 2013, a 0.036% increase compared to the previous year, while the overall amount of fraud decreased by 9.3% and the value of transactions increased by 17% compared with 2008.

The report revealed that about 60% of the total frauds were carried out over card-not-present (CNP) payments, while one in four was through point-of-sale (POS) terminals and about one-six from ATMs.

ECB VP Vítor Constâncio said: "These data show we must remain vigilant against card fraud, although it is also reassuring to see that counterfeit levels are lower inside SEPA than outside, thanks to higher security standards."

CNP fraud has gone up by 21% in 2012 compared to 2011, while CNP payments grew about 15% to 20% a year between 2008 and 2012.

The report also revealed that the European Forum for the Security of Retail Payments has urged service providers to provide higher security standards.

According to the report, the ATM and POS counterfeit losses experienced outside SEPA were recorded to be 94% and 65%, respectively, a huge increase compared to the losses incurred in 2008.

Regionally, highest losses from fraud as part of regular transactions were experienced by France, the UK and Luxembourg in 2012.

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