Hint. It’s Not the UK, Which, Overall, Lost the Most Money to Fraud than any Other European Union Member.
Okay, so maybe we won’t get a gig writing questions for Jeopardy. However, we do have some unsettling answers. Based on data released by the global market intelligence firm, Euromonitor, an article on paymentmagnates.com (link to article) points out that, rather than causing fraud to fall, the adoption of PIN and chip cards in the EU will cause fraudulent activity to rise — especially in the banking and online payment sectors.
Nineteen EU countries and Russia lost a total of €1.55 billion (approximately $2 billion plus). The UK lost the most money to fraud, €535 million (approximately $715 million) while at €429 million (approximately $573 million), France lost the most in the EU to fraud-per-card transaction.
Martin Warwick, a fraud consultant at the financial analytics company, FICO, observed that: “In France, chip and PIN has been used for so long that criminals have completely changed their approach and reverted to ID theft, which accounted for 66 percent of French fraud losses in 2013.”
In France, fraud related losses have grown significantly since the introduction of EMV cards from €7.6 million (approximately $10 million) in 2006 to €284 million (approximately $379) in 2013. And, in 2012 alone, 60 percent of all bank-related card fraud occurred online.