23 October 2017
Find out more

Rise in online and mobile shopping drives card fraud transactions to new high

29 June 2017  |  14281 views  |  0 credit card

European card fraud losses hit a record €1.8bn in 2016, with the UK seeing the highest losses at £618m, as criminals took advantage of a boom in CNP-based online and mobile shopping.

The nine percent rise in UK card fraud over 2015, topped the previous peak set in 2008 after the introduction of chip and PIN.

The figures, detailed in an interactive map of European card fraud produced by Fico and Euromonitor, show that card not present (CNP) fraud across European markets has gone from 50% of gross fraud losses in 2008 to 70% in 2016. Ten countries saw an increase in fraud losses, while eight saw a decrease.

In 2015 the UK’s card fraud rise was the highest in Europe, but in 2016 two countries saw higher rises — Poland (+10%) and Sweden (+18%t). The UK’s rise from 2015 to 2016 was just half of that from 2014 to 2015.

France had the highest basis points at 8.9 (ratio of fraud losses to sales) among the 19 European countries, compared to seven basis points for the UK. However, French card spending is half that in UK, making UK losses much greater. Together, the UK and France account for 73% of the total loses among the 19 countries in 2016, followed by Germany, Spain, Russia, Italy and Sweden.

Fico, which has amassed a total of 70 patents in artificial intelligence and machine learning, talks up the benefits of AI in spotting anomalies without putting friction into the transaction.

“It’s no longer just about identifying patterns that are unusual for the customer — we’re also looking at anomalies at the mobile device, IP address and merchant level,” says Scott Zoldi, FICO chief analytics officer. “All of these have ‘behaviors’ just as individuals do.”

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

The never-ending saga of contactless card fraud

The never-ending saga of contactless card fraud

09 September 2016  |  11470 views  |  5 comments | 23 tweets | 18 linkedin
Online shopping fuels sharp rise in UK card fraud

Online shopping fuels sharp rise in UK card fraud

04 August 2016  |  6468 views  |  1 comments | 15 tweets | 18 linkedin
Credit card fraud ring bust sees 105 arrests

Credit card fraud ring bust sees 105 arrests

08 July 2016  |  7260 views  |  0 comments | 6 tweets | 11 linkedin
US bears the brunt of global card fraud losses

US bears the brunt of global card fraud losses

05 August 2015  |  12810 views  |  3 comments | 23 tweets | 13 linkedin
Card fraud rises across Europe - ECB

Card fraud rises across Europe - ECB

22 July 2015  |  15687 views  |  10 comments | 26 tweets | 21 linkedin
French card fraud rates fall

French card fraud rates fall

13 July 2015  |  7435 views  |  1 comments | 11 tweets | 6 linkedin
British businesses battling epidemic of CNP fraud

British businesses battling epidemic of CNP fraud

15 April 2015  |  8318 views  |  1 comments | 15 tweets | 16 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.fivedegrees.nlRegister now

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
19577 views comments | 29 tweets | 42 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
15234 views comments | 23 tweets | 32 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
10997 views comments | 12 tweets | 23 linkedin
Eight banks form joint venture to launch blockchain trade platformEight banks form joint venture to launch b...
9063 views comments | 14 tweets | 28 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job