ID Theft Drives Up Fraud Losses
France has seen year-on-year growth in card fraud losses since 2006. In 2013 losses grew just 1% over 2012, which is a positive sign. However, that still puts losses 34% higher than those in 2008 and 70% higher in 2006.
France currently has the second-highest fraud losses of any European country, behind only the UK. However, it has the highest fraud losses in basis points, as its card sales are just €580 million, compared with the UK’s €914 million. France’s fraud losses in basis points are at 7.39, down slightly from 7.19 in 2012. Greece is next at 6.9, with the UK third at 5.8 basis points.
In terms of its fraud mix, France is very different from other countries in the Fraud Map. Counterfeit fraud makes up only 2% of the total losses, with Lost & Stolen at 28%. This isn’t surprising, as France was the first country to implement chip & PIN, around 12 years before EMV came along.
But because France has used chip & PIN for so long, criminals have completely changed their approach, and reverted to ID theft. ID theft accounted for 66% of the fraud losses in 2013. This includes account takeover fraud, where verification through bank customer call centres comes under challenge, as well as application fraud using someone else’s personal data. The growth is quite staggering, as losses due to ID theft have grown from just €7.6 million in 2006 to €284 million in 2013.
Crooks in France have been polishing their skills at ID theft for the past 6 or 7 years. This also makes them a greater threat to issuers in other countries. Will ID theft be the next wave of fraud after we crack down on CNP fraud?
Card Stolen or Lost
Postal Theft or Loss
Data provided by Euromonitor International