The UK, France and Italy experienced a year-on-year increase in card fraud losses in 2013.
However, the study by Fico found that the Netherlands and Hungary reduced card fraud losses by a greater percentage than any of the other 18 nations assessed. According to data supplied by market intelligence provider Euromonitor International, overall losses reached €1.55 billion, representing a new high and surpassing the previous peak in 2008. The research covered five categories, including counterfeit fraud, card stolen and ID theft.
The UK experienced £450 million in losses, the highest level since 2008, and both France and Greece had higher ratios of fraud losses to card sales, at seven basis points. The fastest growth of card fraud losses in Europe occurred in Russia, where losses reportedly jumped 28% compared to 2012.
The UK and France experienced 62% of the total fraud losses for the 19 countries studied, which can be attributed to higher rates of card usage that make them targets for criminals. These losses are a wake-up call that should start a new wave of anti-fraud initiatives by regional bodies, card issuers and retailers. The previous peak in 2008 led to new fraud migration patterns. Unfortunately, many organisations do not maintain continuous investment in fraud prevention systems and staff – they invest only when the problem grows. Companies and countries that aren’t investing run the risk of becoming new targets for criminal activity.
by Hollie Stephens
European Marketing Campaign Executive at Jumio