Financial Crime World

Denmark: Europe’s Leader in Lost and Stolen Card Fraud in the Cashless Society

Copenhagen, Denmark

Denmark’s Unwanted Lead in Card Fraud

According to the latest European Fraud Report, Denmark has surpassed other European countries in the number of card fraud cases involving lost or stolen cards. With over 52.6% of Denmark’s total card loss occurrences falling into this category in Q2 2018, the country faces a considerable challenge in combating this growing threat.

A Shift Towards Digitalisation

Denmark’s financial sector’s transition towards digital services includes the closure of bank branches and the expansion of card limits for automated teller machines (ATMs) and contactless payments.

  • Card limits for ATMs and contactless payments have increased. ATM limits are now up to 3,000 DKK, or €406, and contactless payments can reach 350 DKK, or €46.95.

Contactless Payments and Fraud

A detailed look into the fraud trends reveals the significance of contactless payments in Denmark’s fraud landscape.

  • More than half (56%) of all contactless transactions in Denmark fall under fraudulent activities.
  • Contactless fraud accounted for merely 28% of the total overall fraud losses in Denmark.

Unlike other European countries, contactless fraud dominates Denmark’s fraud scene, with card-present transactions such as those with magnetic stripe cards and PIN transactions accounting for fewer fraud cases.

  • The high incidence of contactless fraud in Denmark could be due to the generous contactless payment limits, allowing fraudsters to carry out numerous low-value transactions before being detected.

The Need for Action

Despite being a global leader in digital payments, the rise in lost and stolen card fraud underlines the urgency for Danish authorities and financial institutions to strengthen their risk management strategies and invest in advanced technology to prevent and minimize fraud.