E-fraud in Greece is three times higher than in the EU

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By Leonidas Stergiou

The European Banking Authority (EBA) analyzed e-commerce fraud in the second half of 2020 to assess the new security measures and the effectiveness of the PSD2 Directive, at a time of high growth in online and remote transactions due to the pandemic. The aim is to identify weaknesses, identify patterns of fraud and propose improvement measures by national authorities by 22 April.

From the analysis of the data, the following basic conclusions emerge for Greece:

First, the annual cost of electronic fraud in Greece is estimated at over 22 million euros, with the largest amount being borne by users, ie consumers.

Secondly, most of the money is lost from card transactions, mainly in remote online shopping. In this category, Greece presents a threefold fraud rate in all transactions and an increased amount of average damage to the consumer. The average fraud rate in the EU is 0.01%, while in Greece it is 0.03%. On the value of transactions, the percentage in Greece is 0.034% while in the EU 0.19%. These figures practically mean that in the 1.1 billion card transactions in 2020 with a total value of 36.8 billion euros, the number of fraud-related transactions is estimated at around 345,000, while the total value of fraud is 12.6 million. . euro. The average value of the fraud is estimated at 37 euros.

Thirdly, most money per scam is lost in credit transfers, ie online payments / funds transfers via internet and mobile banking. In this category, the cases of fraud are less compared to the cards, but the average loss of money is 4,892 euros, when the corresponding average price in the EU is 4,191 euros. In Greece, the credit transfer fraud rate in the second half of 2020 was 0.0004% on the number of transactions and 0.0013% on the value of total transactions. The fraud rate, in relation to the volume of transactions is lower than that of the EU (0.0005%), however, the rate in value is higher in Greece by 30% (EU: 0.0010%). Based on data on credit transfers in 2020, 1,910 frauds were detected in Greece, with a total value of 9.3 million euros and an average loss of 4,892 euros.

Fourth, in Greece, in 2020 a significant increase was recorded by 298% of cases of fraud in credit transfers and by 313% in their corresponding value, according to data from the Bank of Greece.

Fifth, the number of cases and the value of ATM fraud (withdrawals) has been limited in Greece and is at exactly the same rates as in the Eurozone. The total loss of money from fraud in cash withdrawals from ATMs is estimated in Greece at 0.7 million euros. The average value of fraud / loss is estimated at 319 euros, compared to 459 euros in the Eurozone.

Sixth, Greek payment service providers show the lowest percentages in the distribution of losses. In particular, in the cases of card fraud, the banks undertook in the second half of 2020 19% of the losses, while the card user 26%. The remaining percentage harmed others (eg traders, etc.). 19% is the lowest in the rest of the EU, ranging from 23% (Spain) to 80% (Portugal). The highest rates charged to banks are found, in addition to Portugal, Finland (78%), Belgium (44%) and Norway (58%). Corresponding is the finding for the distribution of fraudulent losses at ATMs, where Greek banks assumed 3%. The same percentage (and the only single digits) is found only in Bulgaria and Croatia. In other countries, the rate is between 20% (Belgium) and 100% (Estonia). In most other countries it ranges between 40% (Spain) and 94% (Ireland).


Pan-European trends

The EBA report notes that since the beginning of the pandemic, there has been an eruption of electronic transactions, resulting in a significant increase in fraud cases. The largest increase was observed in card transactions and online payments, ie where the user was not present when using a card or other payment services. Thus, there was an increase in fraud in online shopping and especially in online shopping from abroad.

In Europe, however, in the second half of 2020, in contrast to Greece, a reduction in the total value of fraud was recorded, compared to the corresponding half of 2019 by 7.5%. But consumer losses rose 67 percent as banks and payment providers cut sharing rates.

In Greece, there was a greater increase in the number and value of fraud, especially in credit transfers (online payments). According to bank executives and cybersecurity experts, this happened because, during the pandemic, a massive population entered the electronic transactions that was not trained and suspected.


First half of 2021

The Bank of Greece has published the data of card fraudulent transactions for the first half of 2021, which show a significant decline in volume, but stabilization in value. That is, the fraud rate in all transactions appears to be reduced by about half, but the value of fraud in all card transactions remains constant. In the first half, the value of card fraud amounted to 6.1 million euros.

From the data of the EBA with the fraud rates in the second half of 2020 and based on the data for the 2020 transactions by the ECB, it is estimated that the total value of the fraud in electronic transactions (ATMs, cards and credit transfers) amounted to 22, EUR 6 million.


Delayed items

We come to this conclusion, as data on payments and fraud are published with a long delay. The ECB has published the value of transactions for 2020, the Bank of Greece the value of card transactions (and fraud data) for the first half of 2021, the EBA the data for the second half of 2020. The Hellenic Union Banks has stopped posting the relevant data since 2015 and in our efforts more up-to-date data (especially during the period of the campaign for cyber fraud at Christmas but also a few months before the meeting of banks, TTE and EET in the Ministry of Protection) for every new item refers us only to the official announcements, while there was no answer to our question about the Christmas period.

Source From: Capital

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