Bank of Greece: Significant rise in bank card fraud

The Bank of Greece notes a significant increase in e-fraud in Greece during 2022, as the amount of fraudulent payment card transactions increased by 21%, from 13.4 million to 16.2 million euros, compared to a year earlier.

Attacks on cardholders via e-mail, SMS and phones continue unabated, causing potential victims to lose, in many cases, large sums of money. The growing use of plastic money for transactions by Greek consumers has also made them victims of scammers.

This growth was observed despite the fact that over the same period number of cases fraud decreased by about 27%, from 392,400 to 287,300, but the amount of theft increased sharply.

The reason for this was the geometric increase in fraud at such points as ATMs and POS, as well as the increase in the value of money appropriated in operations without the physical presence of the card (card not present – CNP transactions), that is, in Internet transactions.

In particular, online fraud increased in value from €12 million to €13.2 million, being the most important source of card fraud by sophisticated fraudsters.

During the same period, the value of ATM cash withdrawal fraud cases increased by 92% and the value of POS transactions by 147%, reaching €1.3 million and €1.7 million, respectively, from €705 000 and €701,000 in 2021.

Regarding the increase in the cost of ATM and POS fraud transactions compared to 2021, it is noted that the main reason for the increase was cases of fraud committed using a lost or stolen card. With regard to remote transaction fraud, it has been found that the majority of fraudulent transactions are related to transactions with foreign companies that are carried out via the Internet.

The most common types of payment card fraud are: transactions with a lost or stolen card, transactions with a card that was appropriated before it fell into the hands of the owner, issuing a card using false personal or financial information, counterfeiting or creating clone cards that may transact with businesses while real cards are in the hands of their owners, as well as interception and illegal use of the card number in remote transactions or on the Internet.

According to the Financial Stability Report of the Bank of Greece at the end of 2022, there were 20.6 million cards in circulation: 17.6 million – debit, 2.3 million – prepaid, 2.9 million – credit, there are also 126 thousand virtual cards in circulation .

Demand for prepaid and virtual cards is on the rise, driven by the increasing use of the internet for transactions. In 2022, the volume of card transactions amounted to 94 billion euros (+14% compared to 2021). The number of transactions per debit card increased last year to 101 from 90 in 2021.

According to the Greek Police, the main forms of online fraud are as follows:

• Phishing of personal information. This is usually done by sending emails from a supposedly existing and legitimate company that contain a suspicious link or file attachment.
• Credit card fraud. It is carried out by intercepting (phishing) sensitive personal data and, mainly, bank account details on the Internet through a hyperlink, which usually leads to a fictitious bank website.
• “Nigerian” scam. In this case, emails are sent out saying that someone needs your help to transfer a large sum of money (or an inheritance) against a large promised fee.
• Online retailers are posting offers that are too good to be true and are only available for a limited time.
• Spanish lottery. An email notification is sent that you have won a large amount of money in an online lottery.
• Providing loans. Posting on the pages of social networks messages about loans with favorable conditions from unlicensed operators.
• Placing fraudulent advertisements on the Internet about renting a home, looking for a job, or buying and selling goods.

Act smart and protect yourself!

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