GERMANY Increase in Fraud YoY

CNP Fraud Thrives with Escalating E-Commerce

Despite the continued escalation of losses, Germany remained fairly slow in terms of customer adoption of the e-commerce channels, favouring cash and card after remote purchasing. With this in mind, the pandemic had a remarkable impact on the way that Germany needed to do business and force through an increased acceptance of remote and contactless payments. One of the largest digital adoption rates now exists in Germany, with global card schemes growing exponentially in region to offer e-commerce enabled cards to the masses and remove the limitations on the card or cash being present.

This vast increase in adoption, coupled with the increasing rates of CNP fraud, sets a dangerous precedent going forward — but unlike some of the other European states, Germany has already started to respond. Germany has seen one of the largest increases in participation to the FICO Falcon Intelligence Network and are looking to adopt the industry-leading analytics and intra-region and country collaboration that have driven down fraud rates elsewhere. This reaction is refreshing and sets Germany up for real success in the future, so long as the momentum is maintained.