CNP Fraud in Europe Growing, Dragging Overall Card Fraud Up
Mar. 3, 2014
Card-Not-Present fraud in Europe has led to the first increase in overall card fraud in the Single Euro Payments Area (SEPA) since 2008, according to a new report from the European Central Bank, issued last week. The report, which examined fraud up to 2012, found fraudulent transactions that year accounted for €1.33 billion, nearly 15 percent higher than in 2011 (a year that had marked a five-year low in European card fraud).
Of the total, nearly €800 million came from card-not-present channels—mostly online. The report found CNP fraud represented the largest share of overall card fraud in 2012 and experienced the fastest growth, surging more than 21 percent over 2011. It’s a trend the ECB does not see slowing down in the future.
“Data on total CNP transactions suggest that growth in CNP fraud is mainly driven by the growing use of CNP transactions,” the ECB said in the Third Report on Card Fraud. “As further growth in CNP transactions can be expected, there is a strong case for a swift adoption of more effective security measures to protect CNP transactions.”