Russia leads Europe in bank card fraud

Russia leads Europe in bank card fraud
Russia was top among European countries in the rate of growth of bank card fraud in 2012. Damage evaluations increased by 35%, according to a study by FICO.

Back in 2006, the volume of Russia’s part in total European losses was no more than 2% which accounted for 12.6 million euros. Today the situation has changed and according to Euromonitor International statistics, Russia now accounts for 6% of the losses from fraudulent card transactions across Europe, which equates to 91.4 million euros.

In terms of outright totals, France had the most card fraud with 29% of total losses, surpassing the former leader - the United Kingdom with 27%. Pan-European card fraud losses are estimated at more than 1.5 billion euros.

The total losses from bank cards in Europe in 2012 increased by 6% compared with 2011. France, Russia and the United Kingdom provided 80% of this growth.

Russian losses have grown at a faster pace than in the other countries and have increased three-fold compared with 2010, according to Vedomosti. Experts attribute this to the increased use of bank cards in a society that previously used cash, bank card usage rose by 100% in Russia in 2012.

The average amount outstanding balance on credit card stands at 51.1 thousand rubles, which is little over $1600. But as of May 1, 2013 the number of loans with zero payments reached 679 million rubles, or $21.5 million. That’s up 43% compared to a year ago.

The law, which would protect cardholders against illegal withdrawal of funds in Russia has not yet been adopted. It was expected amendments which would oblige banks to return the illegally taken money to customer before the conclusion of any investigation would come into force at the beginning of this year. However the legislation was delayed for at least another year.