European Card Fraud - Austria

Fraud Losses in Austria Reach Record Highs: Renewed Focus Needed

Card fraud losses in Austria have reached an all-time high, surpassing €8 million, with a steady year-on-year increase observed over the past two decades. While traditional methods of fraud — such as the use of lost, stolen, or counterfeit physical cards — remain consistently low, more sophisticated digital fraud techniques are gaining ground.

A significant driver of this upward trend is the rise in CNP (Card Not Present) fraud. One particularly concerning subtype is e-wallet fraud, where victims are deceived into providing authentication codes that enable fraudsters to set up e-wallets like Apple Pay or Google Pay. Once these digital payment channels are established, they can be used to make unauthorized transactions. This modus operandi has been flagged globally as an emerging threat and is likely contributing to Austria’s rising CNP losses.

Identity fraud is also on the rise, fuelled by increasingly advanced tools such as deepfakes and synthetic identities. These technologies make it easier for bad actors to impersonate real individuals or fabricate identities altogether, presenting a significant challenge for businesses trying to verify customer legitimacy.

Despite these challenges, Austria maintains a relatively low fraud rate of 0.6 basis points (BPS). However, a 3% increase in total losses underscores the need for continued investment in enterprise fraud detection and prevention strategies. As fraudsters evolve, so too must the tools and tactics used to stop them.