Here's a new report on Payments Fraud, sponsored by Visa, including data on "Card Not Present Fraud" (Online Fraud) in four European Markets. Included is an illustration taken from the report which itemizes "French Fraud." Online payments certainly seem to be the focal point of the bad guys. And will continue to be until we stop typing and start swiping. From the brochure of the report:
"They say the devil has the best tunes. Certainly fraud is one of the most fascinating aspects of our industry, not least because it is relentless and mutating.
While overall, this comparison between card fraud losses and types in the Spanish, French, British and Dutch markets suggests that fraud losses are being contained as a proportion of card turnover, there is no room for complacency.
EMV implementation has done much to reduce domestic losses from lost and stolen cards, but they still amount to €85.3 million and £54.1 million in France and the UK respectively, for instance, indicating that much remains to be done.
Likewise international fraud is smaller in scale than domestic card abuse, but is proportionately far more common – by up to 30 times higher than in Spain at the top end of the range. And of course international transactions are growing all the time.
Thirdly we tend to overlook the true cost to the industry – see page 17 of the Fraud Supplement for something to hum about.
Examines the overall level of losses, including the variations between the countries profiled.
Method of compromise
Draws on French and UK data to analyse losses by method of compromise, that is the sources of fraudulently used cards.
Geographic place of misuse
Analysis losses by geographic place of misuse (domestic vs international).
Type of misuse
Analysis losses by type of fraudulent transaction (purchases vs cash withdrawals, face-to-face vs CNP purchases).
Linking method of compromise to place of misuse
Draws on the French data to bring together the analysis of losses by method of compromise with the analysis by place and type of misuse.
Concluding comments
Total cost of fraud from Visa Europe
Appendix: Note on sources and statistics
Download the Fraud Supplement
Sponsored by VISA
