The EMV roll out at European ATMs is virtually complete and the European ATM Security Team (EAST) has just released a chart showing the impact on ATM related skimming losses of the rollout of EMV (Chip and PIN) at European ATMs. The chart can be found in the 'EAST ATM Fraud Analysis Report 2011'. ATM related skimming losses have fallen significantly since a high point in 2007.
Domestic issuer losses fell by 63 percent from €62 million during the first six months of 2006, to a low of €23 million during the second six months of 2010. Even when all ATMs are fully EMV compliant in EU-SEPA countries, fraudulent withdrawals can still take place because of the usage of ’mag stripe only’ cards from non EMV card issuers, or because EMV card issuers authorize ‘mag stripe fall back’ transactions.
International losses increased by 201 percent in 2007 from €93 million during the first six months of the year, to €280 million during the second six months. In such cases counterfeit EU payment cards are used to make cash withdrawals in countries where all or some of the ATMs are not yet EMV compliant. As long as 'mag stripes' are present on EMV cards, the cards are vulnerable to skimming. International losses during the second half of 2010 were down by 64 percent from the highpoint in 2007, with losses of €100 million reported.
In addition to the impact of the EMV roll out, this fall in international losses can be also be attributed to the effectiveness of anti-skimming devices, where they have been deployed, to improvements in the detection and monitoring of fraudulent transactions, and to regional card blocking for 'card present' transactions.
Many EU countries are now reporting that losses in the United States are making up the largest percentage of international losses, where there are no known plans to migrate to EMV. This is in line with the latest Organised Crime Threat Assessment published by Europol which states that around 80 percent of non-EU fraud against EU payment cards is committed in the United States.