Commission report calls payment fraud a threat to payments market

28 April 2008

The ‘de facto’ shift of payment card fraud towards remote situations, so-called card-not-present fraud, is increasing in Europe and is considered to constitute the highest threat for payment cards, the report on fraud regarding non cash means of payments in the EU finds. The report shows that the security of means of payment and payment systems is a necessary condition for improving consumer confidence and trust in new payment services.

 

Preventive activity of payment service providers also relies on fraud detection tools or monitoring databases, the report says. However, the desire by the payment industry to pool data between payment instrument issuers (for instance at card scheme level in a SEPA wide area) poses challenges as far as data protection is concerned.

 

Remaining challenges include increasing the understanding of the nature and the extent of the problem, new threats, in particular identity theft/fraud and, more generally, cyber crime.

 

Press release

Commission report

Related Communication of October 2004

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