Europol has published the 'Situation Report on Payment Card Fraud in the European Union' which offers a detailed examination of the EU's credit and debit card fraud position.

The report which is based on the analysis of intelligence provided by law enforcement agencies and other key operational partners, shows that even though the total number of payment cards issued in the EU in the previous 12 months reached over 726 million, fraud has actually declined in recent years due to technological advances that have increased the security of transactions.

According to Europol, the wide adoption of 'Chip and PIN' technology in the EU has been a key driver for reducing domestic 'card-present' fraud. 'Chip and PIN' technology continues to offer stronger security features than conventional magnetic strips, the most obvious security feature being the fact that chips cannot be duplicated as easily as magnetic strips.

Fraud is migrating
However, progress is being undermined by a sharp increase in the level of illegal transactions overseas as crooks target cash machines and payment terminals in EMV-less places such as the Dominican Republic, Colombia, Russia, Brazil, Mexico, and, crucially, the US.
Consequently, in 2011, almost all fraudulent face-to-face transactions with EU cards took place overseas. The problem of illegal transactions in the US has been reported to Europol by all 27 EU member states.

Continued vigilance needed
Europol stresses that despite advances in technology, and the rise in retailer and consumer vigilance, there still remains a very active criminal market in payment card fraud in Europe, which continues to pull in around €1.5 billion a year for the crime groups involved.