Payment Fraud Rate Remains High Despite Improvements

A recent report by the Observatory for the Security of Payment Means has shed light on the ongoing concerns surrounding payment fraud rates in France. While there have been some positive developments, international transactions continue to be a hotbed of fraudulent activity.

International Transactions: A Hotbed of Fraudulent Activity

• International transactions accounted for just 9% of all transactions in 2022, yet they generated nearly 43% of cashless payment fraud.
• The majority of these fraudulent transactions were remote payments, with internet payments being the most common method used by fraudsters.

Remote Payments: A High-Risk Channel

• Remote payments are the channel with the highest fraud rates, accounting for 55% of all fraud cases in 2022.
• Despite a 27% drop in the fraud rate for these transactions compared to 2021, internet payments remain a significant concern.

Card Number Fraud: The Most Common Type of Fraud

• Fraudulent activity involving card numbers continues to dominate, accounting for 75% of all fraud cases in 2022.
• The majority of these fraudulent activities were carried out using phishing emails or SMS messages to obtain card numbers.

International Payments: More Susceptible to Fraud

• International payments are more susceptible to fraud due to the lack of strong authentication measures in place.
• In contrast, domestic transactions have seen a significant decline in fraud rates, thanks in part to the widespread introduction of strong authentication measures under the PSD 2 regulations.

Conclusion

While there are signs of improvement in payment security, the report highlights the need for continued vigilance and investment in fraud prevention measures to protect consumers from increasingly sophisticated cybercriminals.