If the US Follows the Path of Spain
Positive Customer Experience Trumps Fraud Prevention
In 2013, the UK had fraud losses similar to 2009, when levels seemed low after the introduction of ‘tough on fraud’ policies following the peak in losses in 2008. Fraud losses have grown steadily in 2012 and 2013, at 14% and 16%, respectively.
Fraud has increased since 2011 by £110 million, with £80 million in CNP fraud and £9 million in Lost & Stolen. This reinforces the thought that if you can’t compromise the card details, the next best thing is to steal it.
Card theft has evolved in the UK due to the EMV chip & PIN rollout; criminals have been trying a variety of attacks to get both the card and the relevant PIN. For years, criminals have been pickpocketing after seeing consumers input their PIN at a payment terminal or ATM. Confidence tricksters have also been calling cardholders and purporting to be the bank’s fraud team, when actually they are stealing card details. This is very similar to car theft, where security increased to such a good standard that criminals found they had to change methods and break into houses to get the actual car keys.