UK fraud moves overseas
The UK switched to Chip and PIN over the last couple of years leading to a quick reduction in UK domestic fraud rates: UK retailer face to face fraud was GBP 37.5 million (EUR 54.3 million) in H1/2207, down 11% vs. H1/2006 and UK cash machine fraud was GBP 17.1 million (EUR 24.7 million) in H1/2007, down 57% vs. H1/206.
Card Not Present (CNP) fraud, transactions made over the internet, telephone, fax or by mail order, is on the increase. It amounted to GBP 137 million (EUR 198 million, a 44% increase vs. H1/2006.
These figures demonstrate the success of the smart card migration in tackling fraud. However, this success can only be reached when opportunities to use magstripe cards overseas will decrease. The European banking industry has set itself the target of completing its chip card rollout by 2010.