UK Card Fraud Jump Is Largest in Europe
Blog: Enterprise Decision Management Blog
Today we released our interactive European Fraud Map for 2015, showing card fraud trends for 19 European countries. The big news was the 18 percent rise in UK card fraud, largely driven by online transactions.
The rise in UK card fraud equates to an additional £88.5 million lost. Some 75 percent (£66.7 million) of that increase was in card not present (CNP) fraud, and £42.4 million of CNP fraud came from e-commerce. The UK contributed about 43 percent of the total card fraud losses across the 19 European countries studied.
Why was the UK’s rise so steep? My colleague Martin Warwick, who provided the commentary in the map, surmises that cyber crime and the theft of personal data was one culprit. But card issuers’ desire to make online shopping easy may also be playing a part.
“We cardholders are very demanding, and if we don’t get what we want then we let people know in the form of reviews and feedback, not to mention switching cards,” Martin said. “Banks want to avoid intervening unnecessarily when customers are shopping on the internet. E-commerce spending in the UK has nearly quadrupled since 2007, so you see why this is such a target for criminals.”
What can issuers do? Find a way to make data useless to criminals, and make more use of fraud detection analysis.
“FICO has introduced innovative analytics to try and make card fraud detection as painless as possible for the customer and still detect more fraud,” Martin noted. “These include merchant profiling, adaptive analytics and behaviour-sorted lists.”
The online map, based on data from Euromonitor International, shows that card fraud rose in 10 of the 19 countries studied, with Greece, Denmark, France and Russia posting the highest rises after the UK.
For a look at card fraud’s evolution over the last 10 years, check out the European Fraud Map.