An article relating to this blog post on Finextra:
Card fraud threatens development of European payments network - EC
Credit and debit card fraud continues to undermine consumer confidence and threatens to hinder the development of a cross-border payments network in Europe, according to a European Commission (EC) rep...
There have been a few different conversations stemming from the publication of the EC’s report on “Fraud regarding non cash means of payments in the EU”, but none so far seem to address the fact that the report lacks any kind of concrete recommendations.
The EC is missing the opportunity to advocate stronger fraud counter-measures, despite the continuous growth in fraud levels across Europe. Instead of encouraging banks to collaborate on anti-fraud strategies, the report devalues the importance of data sharing
to combat e-banking fraud. By contrast, industry experience has proven that malicious online banking attempts are duplicated around the world – the same criminals are targeting banks globally without leaving the comfort of their computer chair. Although the
banking industry views fraud as a non-competitive market, the EC must wake up to the value of information sharing in an online environment and promote the uptake of services for banks to collaborate. Particularly as the Single Euro Payments Area develops and
digital borders are broken down, financial institutions must be encouraged to jointly combat online crime. I know that there are some nations that are more advanced than the UK when it comes to actively collaborating to fight fraud, but even banks here in
the UK are beginning to work together, as they are witnessing the detrimental effect fraud can have on their brand value and customer relationships. What are others’ experiences of sharing fraud data between financial institutions?