July 31, 2018
Like many countries around the world, the U.K. has been battling rising card-not-present fraud for many years as the number of online transactions grows. For the first time since 2010, however, the country has posted a noticeable drop in CNP fraud losses, according to a report released yesterday by data analytics firm FICO. Losses due to CNP fraud in the U.K. dipped more than five percent from £432.3 million ($567.7 million) in 2016 to £409.3 million ($537.6 million) last year.
According to the report and FICO’s interactive map of card fraud in Europe (based on information from Euromonitor International), the U.K. saw a sharp increase in CNP fraud from 2006 through 2008 followed by a gradual drop until 2011. From 2011 through last year, CNP fraud was on a steady rise in Britain.
“The U.K. threat of CNP has been persistent and growing extensively over the past seven years,” said Toby Carlin, a fraud consulting director with FICO. “Through huge investment in innovation and R&D into the preventative platforms used by the UK banks, they have now turned the tide. While this is fantastic news for the U.K., it should come as a significant warning to other markets for the impending migration of attack.”
The report did not examine specific causes for the drop, but financial institutions and merchants in the largest e-commerce markets have been investing heavily in fraud prevention technology and the kinds of fraud attacks directed at online merchants have shifted. Card fraud overall in Europe continues to grow: the report said all types of card fraud in the region increased two percent.