According to the latest data, European card fraud reached a new high with France and the UK suffering 62% of the total losses of the countries examined
European card fraud losses reached a new high in 2013, with the UK and France suffering 62% of the total losses of the 19 countries analysed.
Using data provided by Euromonitor, the Fico evolution of fraud map attempts to paint a picture of the fraud landscape across Europe, in particular the change between 2006 and 2013.
When fraud losses peaked in 2008, UK issuers sharply reduced card fraud through fraud analytics and the introduction of chip and PIN. However, criminals have been adapting pickpocketing after watching consumers input their PIN, or calling cardholders and purporting to be part of a banks fraud team, when actually they are stealing card details.
Meanwhile in France, chip and PIN has been used for so long that criminals have completely changed their approach and reverted to ID theft, which accounted for 66% of French fraud losses in 2013. Its growth has been quite staggering losses due to ID theft grew from 7.6m in 2006 to 284m in 2013
Fraud is like a balloon squeeze it in one place and it bulges somewhere else
Euromonitor Internationals consumer finance research process encompasses desk research, trade research, industry specialisation and company analysis. In conjunction with secondary source material, Euromonitor analysts engage with the industry via trade discussions. These discussions with all levels of the consumer finance ecosystem serve as a critical component as they provide inputs during early stage construction of estimates and later in the process market consensus on pre-publication figures. An internal audit apparatus screens the data at national, regional and global levels before publication on the Passport database.
For value lost to fraud, analysts consult publicly available sources including but not limited to official sources (e.g., central banks) and trade press. Analysts may also utilize the trade discussion network for insight on fraud within a particular market. Euromonitor International does not conduct its own consumer survey as an element of its research of fraud. Inputs gleaned from initial primary and secondary review are synthesized and retested against market consensus during trade discussions. Continue reading...