Credit card transactions are generally the best-protected credit channel, with wave upon wave of new technology and methodology used to strengthen protection. So it may come as a shock to learn that card losses in Europe are going up, not down.
That is made clear by FICO’s latest map of card fraud in Europe, which shows card fraud losses in 2013 for 19 European countries reached €1.55 billion, slightly more than the previous peak in 2008.
While the UK had the highest losses, mainly fuelled by card not present (CNP) fraud, France and Greece both had higher ratios of fraud losses to card sales, at 7 basis points (.07 percent). And fraud grew fastest in Russia, jumping nearly 28%.
My colleague Martin Warwick provided the commentary for the map, which is based on data from Euromonitor International. As Martin notes, the rise in losses may serve as a wake-up call, and prompt a new wave of anti-fraud investments. FICO has already seen a greater interest in interactive, automated customer communication services that contact customers in real time when a transaction triggers a fraud alert.
The map provides a fascinating look at trends in countries across Europe. Check it out at www.fico.com/fraudeurope.