43rd EAST Meeting hosted by LINK Scheme

43rd EAST MeetingThe 43rd Meeting of EAST National Members was hosted by the LINK Scheme in Edinburgh on 4th October 2017.  National country crime updates were provided by 20 countries, and a global update by HSBC. Topics covered included payment fraud and the evolution of payment technology, ATM malware and logical attacks, terminal related fraud attacks and ATM related physical attacks.

A presentation on Card Not Present (CNP) Fraud was given by Police Scotland and updates were provided by the EAST Payments Task Force (EPTF), the EAST Expert Group on All Terminal Fraud (EGAF) and the EAST Expert Group on ATM and ATS Physical Attacks (EGAP).

EAST Fraud Update 3-2017 will be produced later this month, based on the updates provided at the meeting.  EAST Fraud Updates are available on the EAST Website to EAST Members.

The 43rd EAST Meeting was the first meeting of EAST National Members as the ‘European Association for Secure Transactions’.  At the EAST FCS Forum on 8th June 2017 EAST, formerly known as the European ATM Security Team, changed its name.

ECB reports an overall increase in Card Fraud, although fraud at ATMs is down

ECB_EN_RGBThe European Central Bank (ECB) has just published its 4th Report on Card Fraud, covering 2013.  The report analyses developments in fraud related to card payment schemes (CPSs) in the Single Euro Payments Area (SEPA) and covers almost the entire card market.

The total value of fraudulent transactions conducted using cards issued within SEPA and acquired worldwide amounted to €1.44 billion in 2013, which represented an increase of 8% from 2012. In relative terms (i.e. as a share of the total value of transactions) fraud rose by 0.001 percentage point to 0.039% in 2013, up from 0.038% in 2012.  66% of the value of fraud resulted from card-not-present (CNP) payments (i.e. payments via the internet, post or telephone), 20% from transactions at POS terminals and 14% from transactions at ATMs.

The increase was due to CNP fraud, which saw €958 million in fraud losses in 2013. ATM and POS fraud fell –  card fraud committed at ATMs was down 13.7% when compared to 2012, the first time in four years that ATM fraud fell, while fraud committed at POS terminals was down by 7.9%.

The lower level of ATM fraud was due mainly to a substantial decrease in card-not-received and counterfeit fraud for this category. Counterfeit fraud accounted for 45% of the value of fraud at ATMs and POS terminals, while fraud using lost or stolen cards made up 43%. As observed in previous years, counterfeit fraud was predominant for transactions acquired in countries outside SEPA.

The full report can be downloaded from the ECB website.

Europol supports EU Project to fight Payment Card Fraud

ec3_logo_17Europol’s European Cybercrime Centre (EC3) has supported an 18-month EU-funded project against payment card fraud, initiated by UK authorities, which has resulted in the arrest of 59 individuals, 32 prosecutions and 17 convictions as well as the disruption of five organised crime groups misusing electronic payments.

During the final meeting for Project Sandpiper on 30th January 2014, it was stressed that a total of 52,812 compromised card numbers were recovered during the operations, with estimated savings to the banking industry of over GBP 23 million. The EU-based criminals were misusing financial credentials in mainly remote overseas destinations.

Head of the European Cybercrime Centre, Troels Oerting, said: “The criminal networks involved in this sophisticated electronic payment crime have been taken down as a result of many months of hard work by police officers and prosecutors in the European Union…… We continue our fight against this crime. The criminals continue to develop new methods for stealing our identities, money and ideas online, and we have to continue and further develop operations like Sandpiper and Skynet.”

The phenomenon of card-not-present (CNP) fraud is on the rise, accounting for 60% of all fraud losses on cards issued in the European Union, according to card fraud statistics published by the European Central Bank (ECB) in February 2014. A new EU-funded project, code-named Skynet, has been launched to focus on international cooperation to combat online CNP fraud. Six EU Member States are involved in the project.

EC3 at Europol provided analytical support and organised regular coordination meetings on the Sandpiper project at its headquarters. In addition, Europol’s information and analysis systems were used to exchange and cross-check the intelligence received from Member States. Operations and projects such as Sandpiper and Skynet demonstrate the crucial role of the exchange of information and intelligence through Europol’s channels and the importance of international coordination of such operations.

pcm_1With many people becoming a victim of payment card fraud every year, Europol recognises the need to inform the public about basic fraud prevention methods when using a payment card, whether it is a debit, credit, prepaid or any other value card.  An information leaflet has been provided for cardholder use.

Visit the Europol website for more information.