Brussels, 28/04/2008 (Agence Europe) - Payment fraud remains a problem in the internal market because it affects consumer confidence. According to a report published on Monday 28 April by the European Commission, consumer confidence in certain means of secure payments could be strengthened. This does not necessarily mean new legislation in transaction authentification methods but rather, greater public awareness about non-cash payment transactions. The Commission report is part of the action plan focusing on bank card payments. At the same time, European legislation adopted over the same period also contains provisions aimed at preventing fraud and strengthening the legal framework in Europe (2005 directive on money laundering and the 2007 payment services directive).
Fraud, however, is evolving, and the threat of it has not gone away. Fraud prevention measures have very often been taken by the industry itself. The transition towards EMV chip and pin technology as transaction authentification methods has significantly helped to reduce fraud associated with lost and stolen cards in Europe. Payment card fraud on the internet, however, has at the same time become more frequent. The Commission indicated that the first challenge to meet consists in fostering an understanding of the nature and extent of the problem in an effort to assess the risk and implement appropriate measures. The European Payment Council - EPC) is seeking to establish an anti-fraud data base that will be fully operational this year. The appearance of new threats (identity fraud or theft of identity, cybercrime etc) emphasises the need for education about the risks. The report is available on the European Commission DG Internal Market website:
http://www.ec.europa.eu/internal_market/payments/fraud/index_en.htm #ap2004-7. (A.B.)