Fifth report on card fraud

ECB
By September 26, 2018 14:39

Fifth report on card fraud

This fifth oversight report on card fraud analyses developments in fraud related to card payment schemes (CPSs) in the Single Euro Payments Area (SEPA) and covers almost the entire card market.1 It provides an overview of developments in card payment fraud between 2012 and 2016. The total value of fraudulent transactions conducted using cards issued within SEPA and acquired worldwide amounted to €1.8 billion in 2016 – a decrease of 0.4% compared with 2015. In relative terms, i.e. as a share of the total value of transactions, fraud dropped by 0.001 percentage point to 0.041% in 2016, down from 0.042% in 2015. Compared, again in relative terms, with the levels of fraud observed in 2012, fraud increased by 0.003 percentage points in 2016. Although there was an upward trend in card fraud between 2012 and 2015, it seems the trend is changing, given that fraud went down in 2016. With respect to the composition of card fraud in 2016, 73% of the value of card fraud resulted from card-not-present (CNP) payments, i.e. payments via the internet, post or telephone, 19% from transactions at point-of-sale (POS) terminals and 8% from transactions at automated teller machines (ATMs).2 With €1.32 billion in fraud losses in 2016, CNP fraud was not only the largest category of fraud in absolute value but, unlike ATM and POS fraud, it was also the only one to record an increase (of 2.1%) compared with the previous year. Data on regular, i.e. non-fraudulent, CNP transactions, which are only partially available, suggest that there was also considerable growth in CNP transactions on the whole. Based on this partial information, it can be concluded that CNP fraud grew at a lower rate than CNP transactions.

ECB
By September 26, 2018 14:39

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