Fraud on payment cards in France

French Security of payment cards Observatory (OSCP) reports a slight decline in fraud rates on transactions with a French bank card in France. This rate was in 2015 to 0.040%, against 0.043% in 2014, which is still 225 million, ten million less than the previous year. This progress is due primarily to the widespread authentication measures during online payments, including 3D Secure, which are used by 96% of individuals and 66% of traders.

In 2015, the fraud rate for remote payments (internet, mail, phone) still exceeds the rate for proximity payments and withdrawals. It reached 0.228% (0.248% against 2014). The remote payment is most exposed to fraudulent transactions. It represents two thirds of fraud for only 11.6% of the operations.

Cross-border transactions involving the French cards used abroad and foreign cards used in France are the most affected. Fraud on cross-border transactions has increased by 12%, while the domestic operations decreased by 4.1%. The amount approaching € 300 million in 2015. Europe is working to migrate all payment cards to EMV standard which is more secure.

Global fraud rate, including all payments and withdrawals made with French cards and payments and withdrawals with foreign cards in France stood at 0.082% in 2015. In total, the amount of transactions has set at 636.1 billion euros last year, up 1.8%.

The Observatory notes a rate of payment fraud at the point of sale, to 0.009%.
Contactless payment is now € 500 million monthly transactions. Fraud rate (0.019%) is lower than that observed for withdrawals. Unlike other payment methods, no technical fault was identified. Fraud is exclusively a result of theft or loss of the card. Of the 84 million cards in circulation in France, 40 million are equipped with contactless technology and 12 million are used to make at least one transaction per month. The amount of transactions made via this technology now reaches 500 million per month (ten times more than two years ago), illustrating the speed of its development.

The credit card remains the most used non-cash payments (51%), far ahead of the samples (19%), transfers (18%) and checks (11%).

In 2016, the area of expertise of the Observatory of the security of payment cards should be expanded as part of the Sapin II legislation that deals with payments by check, bank transfers. This broadening of skills will include establishing fraud statistics comparable between these various means. See also https://observatoire.banque-france.fr/ www.lesechos.fr/

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