UK card fraud grew a staggering 18 percent in 2015, the sharpest rise across all of Europe.
FICO has released an interactive map of European card fraud. Most of the 18 percent rise in losses came from online transactions, showing the growth in this channel, ease of accessibility to funds and lower risk for criminals, and was followed by the theft of personal data through cyber-crime.
The rise in UK card fraud equates to an additional £88.5 million lost. Some 75 percent of that increase was in card not present (CNP) fraud, and £42.4 million of CNP fraud came from e-commerce. The UK contributed about 43 percent of the total card fraud losses across the 19 European countries studied.
“We cardholders are very demanding, and if we don't get what we want then we let people know in the form of reviews and feedback, not to mention switching cards. Banks want to avoid intervening unnecessarily when customers are shopping on the internet. E-commerce spending in the UK has nearly quadrupled since 2007, so you see why this is such a target for criminals,” said Martin Warwick, fraud consultant at FICO.
The online map shows that card fraud rose in 10 of the 19 countries studied. Greece (five percent), Denmark (five percent), France (four percent) and Russia (four percent) posted the highest rises after the UK.
“The UK, Denmark and France were among the markets where the value lost to fraud as a share of total card payment value did not decrease, and will benefit the most from additional security measures for card payments, and additional investments from merchants and issuers” said Kendrick Sands, senior analyst, consumer finance at Euromonitor.
“The further projected increase in online payments over the forecast period suggests additional security measures will be required throughout Europe. While the decline in counterfeit cards has been significant from uniform EMV adoption, there has yet to be a similar effort to secure the online space. If greater security measures are not adopted to combat card not present fraud, the broader advance of card payments over paper alternatives could be negatively impacted.”