European Commission reveals e-fraud

[img_assist|nid=7005|title=|desc=|link=none|align=left|width=66|height=100]The other day European Commission issued a statement per which "The airlines, travel agencies and gaming and gambling sectors have been identified as weak areas" where people making transaction by means of their credit cards may run the danger of money fraud.

People keen on gambling online take chances to be looted by fraudsters others in the real world lose their money due to waiters in the restaurants which steal customer credit card data vie special readout units.

Online payment systems are to replace the traditional debit tools which are considered less secure and more expensive. Payment Services Directive and the Single euro Payment Area (SEPA) are specific actions taken to fulfill the objective.

Recent surveys however show that electronic payment systems possess a number of weak spots used by fraudsters to violate customers' accounts. Stealing an identity, for instance, presents a relatively easy task to the violators.

Such a situation along with e-banking frauds causes fear of online business in the population of Europe. Only 1/5 of Europeans do online shopping.

Some people are surprised with the things going on in view of the fact that there are enough means to protect the accounts from encroachment. While the card number can easily be copied in a restaurant or in altered ATMs, the CVX2 number is hardly to be stolen. In spite of it retailers do not request it regularly.

Moreover all credit cards are equipped with the PIN technology preventing the abuse of clients data. As far as the card usage is linked to the PIN the thieves will have to sneak both.

By the end of the previous year 56% of the payment cards introduced by EU banks applied the chip and PIN systems, whereas 59% of the points of sale managed to make secure transactions by requesting PINs. Furthermore 72% of the ATMs in the EU are equipped with chip reader tools.