America is main source of EU credit card fraud according to Europol

By Dyenamic Solitions - Last updated: Wednesday, January 9, 2013 - Save & Share - Leave a Comment

Data breaches from America account for most of the credit card fraud affecting the EU according to the Europol police report.America is main source of EU credit card fraud according to EuropolCriminal gangs are making about £1.2 billion (1.5 billion euros, $2 billion) annually from such fraud, the EU police agency Europol says, regretting that compliance with new security features remains patchy.

Whilst many people think that online fraud comes from Russia, the Middle and Far East- in reality the perpetrators are actually much nearer.

In 2011 nearly all fraud involving EU cards took place outside the EU. Chip and PIN security used in the EU is not yet global, Europol notes.

Such fraud cases overseas have risen.

Besides the US, the fraud networks are also very active in Brazil, Colombia, the Dominican Republic, Mexico and Russia, Europol says.

“So far most of the credit card numbers misused in the EU have come from data breaches in the US,” Europol says, adding that most illegal face-to-face card transactions with EU-issued cards also happened in the US.

In 2011 alone nearly 727m payment cards were issued in the EU.

Fraudulent “card-not-present” transactions, where personal data is stolen on the internet, account for about 60% of the losses from credit card fraud, according to Europol.

The agency is launching a new Cybercrime Centre in The Hague this week, dedicated to fighting such crimes.

Europol notes a range of problems in tackling credit card fraud:

The moral of the story is that as an online shopper- and an ecommerce business always beware of the possibility of fraud at all times.

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