News

Card fraud grows in Hungary in '04

December 27, 2004

Interfax-Europe: In the first half of 2004, there were 2,648 cases of bank card abuse involving cards issued in Hungary, with damages totaling HUF 107.5 million (U.S. $597,000), according to a report by central bank MNB. This represents 0.005 percent of total bank card turnover, and is 19 percent higher than in 2003, when damages also represented 0.005 percent of turnover.

The MNB attributes the increase in 2004 to the activities of a single criminal ring, which boosted damages in the "other" category to HUF 31.7 million (U.S. $209,300). Members of this gang applied for cards legally in Hungary, and used them in neighboring countries to make point-of-sale purchases that were within daily purchase limits but not covered by actual deposits.

Otherwise, damages declined in all other categories, including stolen cards (HUF 34.7 million or U.S. $192,470) and counterfeit cards (HUF 32.8 million or U.S. $182,000), the two largest categories.