Minimizing Fraud through Girocard: Enhancing Security in Transactions - Minimized Unauthorized Transactions via Girocard, Resulting in Financial Savings
Card Theft and PIN Misuse: Trends and Challenges in Girocard Security
The misuse of PIN numbers and theft of Girocards continue to be key issues in terms of fraud damages, according to Andreas Peppler, head of security management at Euro Kartensysteme. The Frankfurt-based institution oversees payment card security on behalf of the banking industry.
While overall damages showed a slight decrease in 2024, Peppler, who declined to disclose specific figures, highlights that the misuse of cards with PIN at automated teller machines (ATMs) remains a significant problem. Many consumers unwittingly aid criminals by keeping their PIN and card together in their wallets.
The theft of cards, whether through pickpocketing, burglaries, or car break-ins, has led to a rise in damages despite the decrease in the use of cards requiring PINs for cash withdrawals. This is because criminals can now withdraw cash through contactless payment without the need for a PIN at checkouts.
In 92.5 percent of the damage cases reported, criminals authenticated themselves, which means they possessed the physical card and PIN or had obtained a copy of a digital card and loaded it onto their smartphone wallet.
Manipulation of ATMs to steal sensitive customer data has become less of a concern, as Peppler stated there have been no reports of such incidents in Germany during the first quarter of the year. This is largely due to the widespread use of EMV technology, which checks the authenticity of payment cards using a built-in mini-computer every time they are used.
Card duplicates are no longer a significant issue, Peppler emphasized, with only 46 cases reported in 2024 where counterfeit cards were misused abroad. The last reported cases were in Brazil and a few in the United States, involving fake magnetic stripe cards.
Peppler underscores the human factor as the weakest link in the system's security chain. With increased awareness, the industry hopes to further reduce fraud damages.
In a broader perspective, advancements in technology, enhanced security protocols, and increased consumer awareness have all played a role in stabilizing the situation and minimizing the impact of Girocard fraud. These efforts represent ongoing commitments by banks, financial institutions, and consumers to maintain a secure and trustworthy payment system.
The community policy, as devised by banks and financial institutions, aims to educate consumers about the importance of keeping their PIN and card separate to prevent unauthorized access and fraud. The employment policy within the banking industry continues to prioritize the implementation of advanced technology like EMV, ensuring the authenticity of payment cards and reducing incidents of card duplication.
