Report: CNP Fraud Accounts for Half of All Card Fraud in Europe
July 26, 2012
The European Central Bank (ECB) yesterday released its first ever report on card fraud, which found—as many reports before it—that, while overall fraud levels have been falling since 2007, CNP fraud is on the rise. The total value of fraud in 2010 (the most recent year examined in the study) amounted to €1.26 billion ($1.53 billion), a 12.1 percent decrease since 2009.
Because CNP transactions do not benefit from the Chip & PIN technology most European nations have implemented, much of the EU’s card fraud has migrated to this type of payment, the report confirms.
CNP fraud has been on an upward trend both in absolute and relative terms, according to the ECB report. Its share of the total increased from 47 percent to 50 percent, while the absolute value increased from €571 million ($694 million) in 2007 to €648 million ($788 million) in 2010. The vast majority of CNP payments (74 percent), the report found, were initiated over the Internet.