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COVID-19 year marked by dramatic swings in payments

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The COVID-19 year of 2020 brought dramatic swings in payments, according to the Dutch Payments Association’s annual report. Figures for debit card payments at the point of sale went up and down like a rollercoaster, while online payments at webshops exceeded all expectations. Fraud and scam losses also reached exceptional levels. The Dutch Payments Association and its members therefore designated an integrated approach to cybercrime as a joint priority.

Cover of the 2020 Annual Report of the Dutch Payments Association with abstract blue shapes and a calm, professional appearance.

Losses from digital fraud and scams in payments rose sharply in 2020, mainly due to a new type of scam: number spoofing , also known as bank helpdesk impersonation fraud. Losses from number spoofing reached €26.7 million. Losses from phishing rose from €7.9 million in 2019 to €12.8 million in 2020. Together with debit and credit card fraud, total losses amounted to €49.1 million, compared with €16.6 million a year earlier in 2019.

Losses from banking fraud in the Netherlands from 2013 to 2020

After presenting the annual report, the Dutch Payments Association held a webinar for members on payment security. Wiebe Draijer, Chair of Rabobank’s Managing Board and a member of the Dutch Cyber Security Council , observed: “Cybercrime increased at an alarming rate over the past year. Dutch banks work closely together to prevent and combat fraud and scams. At the same time, banks and payment institutions cannot solve the problem on their own. We must expand this cooperation further. Cybercrime is a shared societal problem that can only be tackled through a broad, integrated approach involving parties such as telecom companies, internet service providers and the government.”

The Dutch Payments Association and its members established a Fraud Reduction Task Force. Through a combination of measures, information sharing and public information, the Task Force aims to substantially reduce banking fraud, including phishing , stolen and lost debit cards, and online credit card fraud. It also focuses on stopping the two main types of non-banking fraud: impersonation scams involving fake requests for help, including WhatsApp fraud , and bank helpdesk impersonation fraud, also known as number spoofing .

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