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FRAUD REPORT
ONLINE AND OVERSEAS
Payment Card Fraud in France, Spain and UK
If you would like to receive this FREE report please contact: pwelch@bankecon.com
Contents
Introduction
1. Total fraud losses
2. Method of compromise
3. Geographic place of misuse
4. Type of misuse
5. Linking method of compromise to place of misuse
6. Concluding remarks
Appendix: Note on sources and statistics
Payment card fraud is a major concern across Europe, and the major driver of EMV implementation. But how do fraud losses compare between markets?
The short report compares losses from payment card fraud in France, Spain and the UK. It draws on data covering the whole market for France and the UK. For Spain, it uses data published by ServiRed, the largest of the three Spanish payment card networks.
The three markets make good comparators, covering a range of approaches to fraud prevention:
• France pioneered the national roll out of smart cards nationally to control fraud. By 1992, all French bank cards were chip-enabled.
• Spain has largely followed the US model, with 99% of magnetic stripe transactions made with on-line card-issuer authorisation.
• The UK was the first market in Europe to introduce EMV-compliant chip cards.
The report is structured as follows. It first compares total payment card fraud losses across the three countries. It then examines the breakdown of fraud losses by:
• Method of compromise (lost & stolen cards, card not present, etc)
• Geographic place of misuse (domestic vs international), and
• Type of misuse (ATMs, POS transactions, internet transactions, etc).
Drawing on the French experience, the report then links together the data on method of compromise with those on place of misuse.
Concluding remarks draw together the main points, underlining the common threat from internet and cross-border fraud.
Payment Card Yearbooks - European Payment Cards Yearbook 2011-12, containing 33 individual country profiles and Russia, Georgia and CIS Payment Cards Yearbook 2011-12, containing 10 individual country profiles.
