Fair Isaac: UK leads Europe with £ 46million reduction in card fraud losses in 2020
UK cuts fraud losses by 7% (£ 46m) year over year
Denmark and Hungary contribute to the overall reduction of card fraud in Europe
Norway faced largest scale of attacks with 172% year-over-year increase
France, Germany and Poland have also seen card fraud levels increase
In a year that has opened up new opportunities for fraudsters to exploit consumers, UK financial institutions have continued to lead the charge across Europe by outwitting criminals. New data from FICO’s European Fraud Card update shows UK saw biggest decline in card fraud-related monetary losses, down 7% to £ 46m sterling year-on-year.
However, other nations among the 18 European countries studied did not fare as well. Overall, losses linked to card fraud in these countries were reduced by € 62 million.
For more information visit https://www.fico.com/europeanfraud
“Fraudsters are constantly looking for access to poorly protected accounts and opportunities to manipulate transactions and that’s what made 2020 such a challenge,” said Matt Cox, vice president of financial services in the EMEA region. at FICO. “Fraud teams have reportedly been confronted wave after wave of sophisticated COVID and Brexit scams, making the success of UK financial institutions – protecting Britons’ finances – even more impressive.
“2020 has been an incredibly difficult year across the world, with a mix of rapidly changing customer demands, a volatile personnel and service model, and a need to drive transformation faster than ever before. These conditions, in addition to new fraudster attacks fueled by COVID and Brexit, have combined to challenge fraud prevention teams at banks and other financial organizations.
“Despite this constantly evolving set of priorities and demands, several countries in Europe have significantly improved their performance in fraud prevention, contributing to a second consecutive year of reduced fraud losses. And this is crucial for consumers who want peace of mind as the institutions they trust with their finances go out of their way to stop scammers. While this is an incredible achievement in the area of CNP fraud, we need to remain vigilant in the face of growing scams, both in the plastics and payments arena.
Reduction of European fraud led by the United Kingdom
While Europe saw a considerable drop of £ 54million in fraud losses for 2020, this was mainly due to two countries, representing a reduction of £ 78million between them. The UK achieved a reduction of £ 46 million (7% year-on-year); Denmark recorded a decrease of 21 million euros (48%).
“After achieving the biggest reduction of any European country in 2019, UK banks have said it again, with the best net reductions of the 18 countries in this report for the second year in a row,” noted Toby Carlin, Senior Director of Fraud Advice at FICO. “During an incredibly difficult year, only five of the 18 countries FICO analyzed were successful in reducing card fraud.
Hungary has also made significant progress. It achieved the third best fraud loss reduction of the countries surveyed, reducing fraud levels by € 2 million (39%).
Norway sees massive increase in phishing attacks
Unfortunately, losses due to fraud continued to increase in France (€ 6m more than in 2019), Poland (€ 4m more) and Germany (€ 3m more). There was also a major attack in Norway, which resulted in an increase in fraud losses from around € 8 in 2019 to around € 22 in 2020, an increase of 172%, the largest increase of all countries studied.
“An impressive multisectoral response to tackle this new attack is already showing positive signs of improvement,” Carlin added. “Much has been done in the region to combat this threat, both by our banking partners and by mobile phone operators, with real success. The worrying sign here is that scammers have found a hybrid attack vector for the historically “digital-savvy” market.
Attacks in Norway focus on large-scale attacks phishing and smishing attempts, designed to introduce a scam that ultimately ends in fraudulent card not present (CNP) transactions.
Phishing and smishing attacks arise almost exclusively from data compromise and lead to several one-off attacks. The ability to identify these events effectively and early enough to prevent an attack requires a collaborative approach. FICO® Falcon® Compromise Manager is designed to report fraud attacks and data compromise much earlier, helping banks better protect their customers and minimize losses. At the heart of the solution is the collaboration it enables between banks to meet the challenge.
“While it is incredibly positive for so many countries to have made gains during such a difficult time, with Turkey, Spain and the Czech Republic all showing a relatively stable trend through 2020, it remains still a lot to do in other European states for truly collaborative reduction in all areas, ”Cox concluded.
For further comments:
FICO UK Public Relations Team
Wendy Harrison / Parm Heer / Matthew Enderby
0208 977 9132
FICO (NYSE: FICO) makes decisions that help people and businesses around the world thrive. Founded in 1956 and headquartered in Silicon Valley, the company is a pioneer in using predictive analytics and data science to improve operational decisions. FICO holds more than 195 U.S. and foreign patents on technologies that increase profitability, customer satisfaction and growth for companies in financial services, telecommunications, healthcare, retail and many other industries. . Using FICO solutions, businesses in over 120 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to providing guarantees. that millions of planes and rental cars are in the right place at the right time.
Learn more abouthttps://www.fico.com
FICO and Falcon are trademarks or registered trademarks of Fair Isaac Corporation in the United States and other countries.
Fair Isaac Corporation published this content on June 21, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on Jun 21, 2021 07:48:01 PM UTC.