EVOLUTION OF CARD FRAUD IN EUROPE 2018
Data Compromise Overshadows Improvements Across Europe
Driven by the hardening of regulatory frameworks and an increase in prevention techniques, significant improvements in plastic fraud have been recorded in multiple markets across Europe. For example, Norway is a model of continued positive performance in plastic fraud reduction. However, we might still see the manifestation of new fraud types in this market in the coming years.
As in previous years, card not present (CNP) fraud continues to drive losses in the vast majority of regions. However, the added dimension this year is that these losses are driven almost exclusively by data compromise and breaches.
Alongside card fraud, the most significant growing threat across Europe continues to be digital fraud and specifically, social engineering. In addition, money laundering via mule accounts remains a challenge for banks to overcome. The growth of real-time payments across Europe facilitated by schemes such as SEPA CT Inst mean that criminals can take advantage of instant payments and move illicit funds quickly through accounts and out of reach of law enforcement. As the use of such schemes becomes ubiquitous across Europe, banks must take the appropriate measures to prevent further increases in this type of fraud.
Increase in Fraud YoY
Decrease in Fraud YoY
No Change in Fraud YoY
Data provided by Euromonitor International
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5 Keys to Successfully Applying Machine Learning and AI in Enterprise Fraud Detection
Like many aspects of our lives, technology is providing consumers with more options when it
making financial transactions. From relatively new interactions, such as mobile commerce and
peer payment apps, to near real-time payment windows, the changes are rapid and expansive.
want immediate payment processing whenever and however they choose to transact. They want a
relationship that’s 100% convenient and 100% secure, and modern financial institutions are
their best to accommodate these market demands. But there are gaps.