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BizReport : Ecommerce archives : July 06, 2017

Europe: Card fraud losses reach new high

Card fraud losses across 19 European countries hit a new high last year with the UK seeing the highest losses, according to a new interactive map released by analytic software firm, FICO.

by Helen Leggatt

Card fraud losses for 19 European countries hit €1.8 billion in 2016, a new high according to FICO. With losses of £618 million, a 9% YoY rise, the UK saw the biggest losses, exceeding the previous peak in card fraud in 2008 just after the introduction of chip and PIN.

Together, the UK and France account for nearly three-quarters (73%) of the total losses among the 19 countries in 2016, followed by Germany, Spain, Russia, Italy and Sweden.

Card not present (CNP) fraud has gone from 50% of gross fraud losses in 2008 to 70% in 2016.

FICO's interactive map, which is based on data from Euromonitor International and UK Cards Association, shows a total of 10 countries with increases in fraud losses and eight with a decrease.

"The growth in online spending and CNP fraud brings new challenges for banks and retailers, as criminals thwarted by chip & PIN have moved to a less risky channel," said Martin Warwick, senior consultant for fraud at FICO. "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."

Tags: Europe, financial technology, fraud, mobile

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