European Card Fraud Losses Highest Ever
Aug. 7, 2014
Total card-fraud losses in Europe reached an all-time high in 2013 of EUR1.55 billion ($2.07 billion), according to predictive analytics firm FICO. On Monday the company that originated the credit score released its European map of card fraud that showed the biggest jumps in Russia and the U.K. The company said in its analysis that overall losses to card fraud in the U.K. are at the highest since 2008 and, like many other countries that have migrated to chip-and-PIN, card-not-present fraud leads the way.
CNP losses in the U.K. rose from £246 million ($414 million) in 2013 to more than £300 million ($505 million) last year.
"When fraud losses peaked in 2008, UK issuers sharply reduced card fraud through chip and PIN and fraud analytics," said Martin Warwick, a principal fraud consultant at FICO in EMEA. "However, tougher fraud detection policies and thresholds also block more genuine transactions, and now the focus for UK banks and regulators is very much on improving the customer experience."