Decrease in Girocard-related Fraud Cases Reported - Lowered financial losses due to fraud with the use of Girocard
In Frankfurt am Main and across Germany, a significant portion of fraud damages associated with the Girocard system stems from the misuse of Personal Identification Numbers (PINs) at Automated Teller Machines (ATMs). According to Andreas Peppler, head of security management at Euro Kartensysteme, the primary vulnerability lies in the lax handling of PINs, resulting in over half of all fraud incidents when cards are used at ATMs with misused PINs [1][2].
The issue arises due to the carelessness of many consumers, who store their cards and PINs together. Criminals can exploit this lack of security, accessing and using the cards at ATMs. Notably, thieves can also withdraw cash without a PIN via contactless payments, if a Girocard falls into their hands through pickpocketing, burglaries, or car break-ins.
However, in the majority of cases, criminals authenticate themselves before making transactions. This means they possess both the physical card and PIN, or have successfully obtained a digital card duplicate and loaded it onto their smartphone wallet [2].
Manipulation of ATMs to steal sensitive customer data is no longer a significant concern, with skimming no longer being profitable for criminals as magnetic stripe data is largely useless [2]. Instead, the biggest weakness in the system is human error, making it the easiest lock to open in this security chain.
The industry is working towards reducing fraud damages by raising awareness among consumers about secure PIN handling and implementing technological advancements. Secure payment systems and monitoring tools are crucial in identifying suspicious transactions and preventing unauthorized access [1]. Consumers are advised not to store their PINs with their cards and to be mindful of contactless payment security [1][2].
While the misuse of PINs remains a significant issue, overall fraud losses have slightly decreased due to these measures and technological advancements. However, continued vigilance and education are necessary to ensure the robustness of the Girocard system.
[1] Euro Kartensysteme[2] Official figures from 2022 – damage totaled around 29 million euros.
- In light of the persistent issue of PIN misuse at Automated Teller Machines (ATMs) and the subsequent fraud damages, the community policy should emphasize the importance of secure PIN handling to reduce vulnerabilities in the Girocard system.
- To fortify the Girocard system against fraudular activities, it's vital for the employment policy in the industry, particularly in finance and technology sectors, to foster advancements in secure payment systems and monitoring tools, as well as promote education and awareness programs for consumers.
