Credit card fraud a continuing global problem

BY Dave Sloan  August 14, 2014 at 2:39 PM EST
Photo by Flickr user Sean MacEntee

Photo by Flickr user Sean MacEntee

The eurozone is quickly becoming a hotbed for credit card fraud.

Recent data released by Euromonitor International, a private analytics company, shows that Europe totaled $2.1 billion in losses in 2013, a 6.2 percent increase from 2012. The combined total puts the 19 countries profiled second to the United States, which led the world with $5 billion lost.

The United Kingdom and France, which represented 62 percent of the eurozone losses, demonstrated a trend in the staggering surge of fraud. The U.K., with losses totaling $715 million, saw a 16 percent jump from 2012 — second only to Russia’s 27 percent increase. France’s losses amounted to $574 million; second among European countries.

In 2013, after hackers breached tens of millions of credit and debit accounts from Target stores, American credit card companies agreed to replace magnetic strips with “chip and PIN” technology. The security feature, which France adopted more than a decade ago, aims to makes it more difficult for hackers due to the requirement of a PIN to complete any purchase.

Unfortunately, this type of technology has only enabled other forms of fraud. According to software company FICO, hackers continue to accustom to credit card protection technology and have diverted their attention to ID fraud.