CZECH REPUBLIC No Change in Fraud YoY
Improvements in Non-CNP Fraud Mask the True Threat
As mentioned in previous reports, many central European countries like the Czech Republic have seen a steady and consistent migration and growth of Card Not Present (CNP) fraud, and 2020 is no exception. Whilst the total losses have largely plateaued, this is only due to decreases in all ‘Card Present’ loss types, offsetting the escalating increase in Card Not Present (CNP), with the Czech Republic now fast approaching 100M value lost to CNP fraud alone (71% of all fraud).
The story is beginning to change however, with an increased focus on fraud prevention and adopting industry-standard processes and consortium-based analytics. These transformations are already forcing the fraud rates to slow and are beginning to force ‘in country’ migrations between the banking entities, with the fraudsters preferring to attack the legacy or less robust frameworks. Continued adoption of Enterprise Artificial Intelligence and Machine Learning platforms, such as FICO Falcon Platform, based on collaborative efforts such as FICO’s European data consortium, will continue to slow the growth and ultimately return the market to winning ways.