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Europe card fraud peaked in 2008. Now landscape is changing with migration to Germany & France f

FICO, the analytics company, have found that technology is changing the fraud landscape in Europe. Card fraud has migrated from UK to other countries, notably France and Germany, over the last few years. This has been due to the UK's adoption of chip and PIN technology in 2006, and the UK card issuer's use of analytics-based fraud management.

Other findings included:

  • Germany experienced a 140% increase in fraud levels in 2006-2011, while UK declined by 36%
  • as more countries have rolled out EMV chip to protect POS transactions, European fraud has moved from counterfeit skimming and migrated to cross-border attacks in countries where there is plenty of non-EMV enable ATMs and to CNP (Card Not Present)
  • counterfeit fraud fell by 60% from March 2009 to March 2011
  • CNP now accounts for 66% of all card fraud. FICO believes that this has not been tackled effectively because issuers have mostly not paid the full cost, but this is changing as the adoption of 3D Secure authentication is shifting CNP liability to the issuer.

Card Not Present fraud is the biggest risk to your card payments. Fortunately, the WorldPay Research shows that consumers are willing to, are happy to accept the robust screening process needed to prevent CNP fraud, when purchasing goods and services on the Internet.

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