A massive increase across Europe in card-not-present fraud is challenging financial institutions, according to a new report. CNP fraud now represents almost 80 percent of the total volume of fraudulent card transactions in the region.
“The biggest global card fraud challenges are card-not-present fraud (CNP fraud), cross-border fraud and counterfeiting on non-EMV cards,” according to the report on European fraud trends from Nets, a Nordic-based payment service provider.
The report also finds the total value of fraudulent transactions annually amounts to €1.8 billion ($2 billion).
CNP fraud has increased, but fraud at ATMs and POS terminals are down, according to the research. In 2016, 73 percent of the value of all fraud losses on cards issued in SEPA resulted from card-not-present (CNP) payments and 3 percent at automated teller machines (ATMs).
An increase in CNP fraud of 66 percent over a period of five years was the main driver for the 35 percent increase in overall fraud during this period. Card fraud increased in terms of volume number by 27.2 percent over 2015, and by 92 percent compared to 2012. By comparison, the total number of transactions increased by only 9.6 percent in 2016 compared with 2015.