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Payment fraud losses fall sharply again

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Losses from fraud in payments fell by 43% in 2016, from €17.9 million to €10.2 million, according to figures from the Dutch Payments Association and the Dutch Banking Association.

The largest decrease was in online banking fraud, where losses fell by 78% to €822,000. Banks reimbursed victims for 98.6% of that amount. Losses from debit card fraud fell by 32% to €5.6 million.

Combined bar and line chart of payment fraud losses in the Netherlands from 2012 to 2016, broken down into online banking, debit card and other fraud. Total losses fell from about €82 million in 2012 to €10.2 million in 2016.
Fraud losses in payments in 2016, in millions of euros

Consumers more aware of risks

The decrease in losses from online banking fraud shows that banks are becoming increasingly successful at detecting fraud in time. Consumers are also becoming more aware of potential risks. The advice for debit cards remains the same: never let your debit card out of your possession, never send it by post, and never disclose your login details or PIN to anyone, including by telephone, email, messaging apps or social media.

Importance of effective cooperation

Effective cooperation and the sharing of knowledge and information between financial institutions, cybersecurity companies and public authorities also play an important role in reducing fraud in payments. Within the National Cyber Security Centre and the Financial Institutions Information Sharing and Analysis Centre, this cooperation focuses mainly on preventing and detecting cybercrime. In the Electronic Crimes Task Force, the judiciary, police and banks work together to investigate and prosecute cybercriminals. Other EU countries are very interested in this collective Dutch approach to cybersecurity.

Banks also help combat non-banking fraud

Despite banks’ success in limiting fraud in payments, vigilance remains essential. Criminals are increasingly targeting other, non-banking forms of fraud, such as scams on online marketplaces and invoice fraud. To prevent incorrect transfers and invoice fraud, Dutch banks are offering their customers the IBAN Name Check. This innovative service checks the beneficiary name entered by the customer when making a transfer through online or mobile banking. Rabobank developed the IBAN Name Check and will introduce it in the second quarter of 2017, with the other banks to follow. Dutch banks are leading Europe with this service.

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