A criminal ecosystem has evolved with different individuals specializing in different areas and working together, making use of a greater breadth of attack vectors and showing higher professionalism than ever before, according to an analysis from U.K.-based trade group the Emerging Payments Association (EPA).
While the report examines a wide variety of financial crimes, it notes that CNP remote purchase fraud accounted for nearly 80 percent of all card payment fraud losses across Europe in 2020 at €1.3 billion (more than $1.5 billion). The EPA attributes many struggles facing the industry to increased levels of organization and technological savvy among criminals.
Additionally, a persistent frustration for antifraud professionals is the antipathy of their own customers, the report notes. But it is incumbent on merchants and financial services providers to educate their users.
“We consistently heard of the low levels of customer understanding of crime prevention techniques and how this creates opportunities for fraud,” the report’s authors write. “The Covid pandemic has resulted in many new or inexperienced digital consumers and businesses that are vulnerable to cyber-attacks and scams including phishing, vishing and smishing. However, consumer inertia to new processes and the use of fraud prevention tools must be overcome. [Financial services providers and merchants], therefore, have an important role to play in better educating consumers on how to avoid becoming a victim and on the use of security tools and follow best practices.”