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Payment fraud falls sharply again

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Payment fraud fell sharply for the second consecutive year. Total losses declined to €33.3 million last year, almost 60% less than in 2012. Losses caused by debit card skimming fell by 76% to €6.8 million, while online banking fraud losses fell by 72% to €9.6 million. Total payment fraud losses amounted to €81.8 million in 2012 and as much as €92.1 million in 2011.

Man shouts through a megaphone from a lifebuoy, with the text “Crash Course – Online Self-Defense”; powerful, alarming visual that calls for immediate action.

Threat

The Dutch Banking Association (in Dutch) and the Dutch Payments Association, which is responsible for the operation of payments, announced the figures today. Despite the decline, banks continue to face a persistently high threat of online banking fraud, said Dutch Banking Association Chair Chris Buijink and Dutch Payments Association Director Piet Mallekoote during a press meeting. This is due to the continuing large number of attempted fraud cases.

Secure banking

Banks invest many millions of euros in combating crime. Online banking fraud has declined because banks are increasingly able to detect and prevent attempted fraud at an early stage. Consumers are also becoming more aware of potential risks, partly thanks to the banks’ public information on secure banking (in Dutch) . A television commercial carrying the message “Hang up! Click away! Call your bank!” has aired since autumn 2013. The Electronic Crime Task Force (ECTF), a partnership between banks, the police and the Public Prosecution Service, has been active since 2011 to improve the investigation and prosecution of online banking fraud.

Skimming

Banks’ use of geoblocking, which blocks debit cards outside Europe by default, has proved highly effective in the fight against skimming. Since all major banks introduced this measure during last year, skimming losses have become very limited, amounting to less than €1 million in the second half of 2013. The EMV chip had already been introduced. Additional anti-skimming measures have also been taken at ATMs and unattended payment terminals where the card is fully inserted and the magnetic stripe could be copied. Under SEPA, the single euro payments area, EMV is the prescribed standard for payments and cash withdrawals in Europe. Since early 2012, it has therefore been virtually impossible to withdraw cash with skimmed cards in Europe. Geoblocking has now almost closed off the rest of the world as well.

Piet Mallekoote, Director of the Dutch Payments Association, on the left, and Chris Buijink, Chair of the Dutch Banking Association, on the right, flank online self-defence coach Dr Marc from the “Hang up! Click away! Call your bank!” campaign (in Dutch) .

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