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Detailed information about payment fraud, online fraud and fraud prevention in Spain can be found in the downloadable file
In Spain, as elsewhere, the growth of ecommerce and mobile commerce bring increases in online and mobile fraud. Carefully tailored fraud prevention measures play an important part in countering fraudsters and protecting genuine consumers.
While the number of cards in circulation in Spain has fallen drastically in recent years, 2013 brought the first signs of improvement with a slight upward trend in the number of card transactions. Debit cards are preferred by consumers who perhaps favour the tighter spending controls provided by these cards. Prepaid cards remain a small fraction of total cards today, although numbers are expected to grow. In 2013, Visa Europe reported 5.2 million contactless cards in circulation in Spain.
According to EU data for 2012, Spain was the only SEPA country where the main channel for fraud was at the point-of-sale (50%). As a percentage of total sales, fraud remained relatively low at 0.02 compared with France and the UK, where the rate was 0.06. Again, according to the ECC cross-border ecommerce report, only 7% of internet users in Spain said they had experienced online fraud, significantly fewer than in most EU countries and compared with 16% in the UK.
Euromonitor figures indicated that total fraud had fallen from EUR 176.2 million in 2006 to EUR 96.2 million in 2012, due both to migration to EMV and to the use in Spain of increasingly robust online authentication methods and fraud prevention and detection tools.
The strong focus on authentication and verification should stand the country in good stead as ecommerce expands. Travel and tourism feature strongly among ecommerce sales and recent gains have also been seen in betting and gambling sectors. These are sectors that pose particular challenges for fraud detection and prevention, requiring tailored fraud rules to enable foreign card acceptance and to support fraud detection within a small time window.
Spain is now the leading European country for smartphone penetration (66%) according to research carried out by comeScore MobiLens. As more consumers become comfortable with mobile payments, mobile fraud prevention is likely to see increasing focus. Authentication and verification methods that have proved successful in combating online fraud can be considerably less effective against mobile fraud – perpetrated by fraudsters on the move – and merchants will need to adopt new fraud strategies for this growing sales channel.
More information about ecommerce fraud, mobile fraud and online fraud prevention in Spain can be found in the downloadable file.
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