06.04.2016, 01:26
Unauthorised Card Transactions Drop 14% in 2015
OREANDA-NEWS. In 2015, the number of unauthorised card transactions, for cards issued in the Russian Federation, was down 27% against 2014, according to 'The 2015 Review of Unauthorised Cash Transfers'. For 2015, the number of such transactions amounted to 260,000, having carried a total of ?1.14 billion.
According to the review, the trend towards a decline in the number of such card transactions, first identified in 2014, holds. In 2015 Q4, against the same quarter of 2014, these shares were down from 0.0026% to 0.0015%, by the number of transactions, and from 0.0033% to 0.0021% by the volume carried.
The data indicate that pay cards remain most popular with fraudsters, attributable to their wide use.
The use of card details, similarly to 2014, tops the list of banking card misuse cases. In 2015, these cards totalled 84%.
2015 showed a decreased number and volume of unauthorised ATM operations. It is connected with, iter alia, the enforced migration to chip banking cards. Nevertheless, the damage from such transactions still makes an essential part in the total amount.
Fraudulent transactions using banking cards declined through, inter alia, the introduction in March 2015 of additional information protection requirements. It relates to, in particular, requirements for protection applicable for Internet and mobile banking transactions, ATMs and payment terminals, banking cards, and also to ensuring customers are informed of the risks of unauthorised transactions.
However, although there are fewer ATM-related incidents, the share of unauthorised Internet / mobile device transactions in the total volume and number of such transactions is growing. Over 190,000 such transactions were made throughout 2015, which accounted for half, in terms of volume, of all unauthorised transactions.
It is therefore clear that 2015 saw a trend towards card fraudsters losing interest in contact devices (ATMs, physical bank cards) and developing interest in more high tech infrastructure of remote access (remote banking, e-wallets, Internet and mobile device transactions).
In this connection the Bank of Russia recommends that credit institutions inform their customers of risks related to the use payment cards, especially on the Internet, implement various technologies enabling transaction confirmation and use fraud monitoring systems.
According to the review, the trend towards a decline in the number of such card transactions, first identified in 2014, holds. In 2015 Q4, against the same quarter of 2014, these shares were down from 0.0026% to 0.0015%, by the number of transactions, and from 0.0033% to 0.0021% by the volume carried.
The data indicate that pay cards remain most popular with fraudsters, attributable to their wide use.
The use of card details, similarly to 2014, tops the list of banking card misuse cases. In 2015, these cards totalled 84%.
2015 showed a decreased number and volume of unauthorised ATM operations. It is connected with, iter alia, the enforced migration to chip banking cards. Nevertheless, the damage from such transactions still makes an essential part in the total amount.
Fraudulent transactions using banking cards declined through, inter alia, the introduction in March 2015 of additional information protection requirements. It relates to, in particular, requirements for protection applicable for Internet and mobile banking transactions, ATMs and payment terminals, banking cards, and also to ensuring customers are informed of the risks of unauthorised transactions.
However, although there are fewer ATM-related incidents, the share of unauthorised Internet / mobile device transactions in the total volume and number of such transactions is growing. Over 190,000 such transactions were made throughout 2015, which accounted for half, in terms of volume, of all unauthorised transactions.
It is therefore clear that 2015 saw a trend towards card fraudsters losing interest in contact devices (ATMs, physical bank cards) and developing interest in more high tech infrastructure of remote access (remote banking, e-wallets, Internet and mobile device transactions).
In this connection the Bank of Russia recommends that credit institutions inform their customers of risks related to the use payment cards, especially on the Internet, implement various technologies enabling transaction confirmation and use fraud monitoring systems.
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