Fraud in card payments in e-commerce increases by 30%

Fraud for card payment transactions in electronic commerce grows by around 30% this year, at the same rate as transactions, according to an estimate made by the Coordinated Institute of Governance and Applied Economics.

In this way, the advance of digital commerce in Spain indicates that the level of growth of previous years will be maintained, or slightly higher, with rates of increase around 30% and with an amount at the end of the year above 51,000 million of euros.

Card payment fraud follows the same trend, with an amount defrauded by credit card transactions in digital commerce that will account for more than 75% of the total fraud in the use of this payment method.

“Credit card fraud focuses on the Internet and goes down at physical points of sale and at ATMs,” says the stud.

Instituto Co Coordinates explained that the increase in online sales platforms, which expand to all types of commercial operations, multiplies the scope of fraud to levels unknown until now.

The impersonation and theft of data in card payments focus on crimes in online commerce operations and its expansion is driven by the “speed of vertigo” to which these operations occur.

As can be seen from the analysis, companies lack in most cases the means to verify in real time the data of the payment instrument at the accelerated rate with which operations are closed, which provides enormous possibilities for fraudsters.

Instituto Coordinates believes that the picture is not too encouraging for the future. Although an increase in the security conditions of card payments in general is foreseeable, the exponential growth of electronic commerce, its operations and the amount thereof, will minimize in practice all the protection effort that be implemented, indicates.

Cash fraud decreases

The evolution that bankruptcy fraud is experiencing and that the European Central Bank (ECB) certifies in the first half of the year is the reverse of e-commerce.

The number of counterfeit euro banknotes withdrawn from circulation decreased by almost 17% compared to the same period of the previous year and the probability of receiving a false ticket is “quite remote”, as its number is very low compared to that of the banknotes authentic, which has steadily increased at rates higher than GDP growth since the introduction of the euro

The Executive Vice President of the Coordinates Institute, Jesús Sánchez Lambás, explained that the coexistence with card payment fraud in digital commerce “is unavoidable in today’s society”, which is why it is essential to incorporate a greater technological culture and guidelines preventive behavior

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