Report: Europe ‘Winning the War’ on CNP Fraud
July 27, 2015
Card-not-present fraud continues to dominate card fraud in Europe, but the efforts specifically tailored to curtail it seem to be making some headway, according to a new report from data analytics firm FICO. The company’s research used the U.K. as an example, where CNP fraud accounts for 70 percent of total fraud losses, up from 54 percent in 2008. However, since 2008 the total value of CNP fraud losses in the U.K. has grown only 1 percent from £328 million ($509 million) to £331 million ($513 million) while total e-commerce spending during that time doubled.
“We are winning the war on CNP fraud, but we still have a long way to go to get CNP fraud fully under control,” said Martin Warwick, FICO’s fraud chief for Europe. “Authentication of customers and their devices will play an ever-increasing role.”
The report also noted that much of the card fraud emanating from European countries was not perpetrated within their own borders. In the U.K., for example, FICO said cross-border fraud on debit cards increased by 25 percent, but 47 percent of those fraudulent transactions were taking place in the U.S. The company attributes this increase to the U.S. being one of the last countries not protected by EMV.