Counterfeit Card Fraud Falls Sharply in Europe, Finds Fico
Fico, a provider of analytics and decision management technology, has released its analysis of data showing that major shifts have occurred in European card fraud patterns. Analysis done on 55 million active credit cards represented in the Fico Falcon Fraud Consortium for Europe showed that counterfeit fraud fell 60% between March 2009 and March 2011.
Fico’s data also shows that card-not-present (CNP) fraud accounted for 69% of all accounts victimised by fraud and 72% of all fraud losses. The top 10 merchant categories accounted for 30% of the total fraud losses, led by hotels/lodging, travel agencies and ATMs.
“Our analysis of the data shines a spotlight on the tremendous change that has occurred in Europe’s fraud landscape,” said Martin Warwick, Fico’s fraud chief in Europe, Middle East and Africa (EMEA). “Chip and PIN technology has radically driven down counterfeit and other forms of ‘card present’ fraud in the UK, which just three years ago accounted for some 60% of Europe’s credit card fraud. In response, criminals are operating across borders, targeting countries such as Germany that have weaker detection and prevention capabilities, and shifting their attention to card-not-present schemes such as online fraud.”