NEWS
UK banks outperform rest of Europe in reducing card fraud
Cybercrime report reveals new opportunities and risks for EMEA in online channels
LexisNexis Risk Solutions has released its biannual Cybercrime Report , which tracks global cybercrime activity from January 2020 through June 2020 .
The report dives deep into how the COVID-19 pandemic has impacted the global digital economy , regional economies , industries , businesses and consumer behaviour .
The period has seen strong transaction volume growth compared to 2019 but an overall decline in global attack volume . This is likely linked to growth in genuine customer activity due to changing consumer habits .
UK banks achieved the biggest reduction in card fraud losses last year among 18 countries across Europe , according to the updated FICO European Fraud Map .
More than half of the countries saw increases in card fraud losses in 2019 according to the report , based on data from Euromonitor International and UK Finance .
“ Following a frustrating increase in 2018 – largely caused by an explosion of data compromise ‘ bust out ’ events – much of Europe has once again turned the tide on fraudsters , achieving a combined 2 % overall reduction ,” said Toby Carlin , Director of Fraud Consulting in EMEA at FICO . “ British consumers should be reassured that the
United Kingdom achieved the largest single reduction in fraud at 8 %. This is a testament to the anti-fraud activities and investments by UK banks , which reduced fraud losses in 2019 by £ 52 million – that ’ s a million pounds every week .”
2019 was a strong year for many European countries in reducing basis point fraud losses ( a ratio of fraud losses to card sales ), against the backdrop of increased transactional volume and value in 2019 .
But there were also some worrying increases . Most notably , France and Italy saw the largest value increases and were together responsible for 71 % of the monetary loss increases across the 18 countries studied .
The LexisNexis Risk Solutions Cybercrime Report analyses data from more than 22.5 billion transactions processed by the LexisNexis Digital Identity Network , a 37 % growth year over year .
Mobile device transactions also continue to rise , with 66 % of all transactions coming from mobile devices in the first half of 2020 , up from 20 % in early 2015 .
The Digital Identity Network also notes an uptick in transactions from new devices and new digital identities .
We attribute this to many new-to-digital consumers moving online to procure goods and services that were no longer available in person or harder to access via a physical store , during the pandemic .
The Europe , Middle East and Africa region ( EMEA ) saw lower overall attack rates in comparison to most other global regions from January through June 2020 .
This is due to a high volume of trusted login transactions across relatively mature mobile apps .
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