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Darknet Card Fraud Increased By 50% in Germany in the First Quarter of 2018

In 2017, more than 80,000 cases of stolen card details were reported in Germany. The victims complained that they tried to make purchases only to find that they couldn’t access their funds. According to the The Local De, CNP is one of the most common crimes in the European country.

Card Not Present (CNP) Policy Fuels Fraud

CNP fraud is a crime that involves making transactions with a person’s card without their knowledge. When making a Card Not Present payment (CNP), the physical card is not needed. The transactions are made automatically as long as the individual can prove a few things about the card. This becomes a ‘major route’ for credit card fraud as it is hard for store owners to verify the real holders when authorizing payments.

There has been a 50% increase of CNP cases. Dagens Handel reports that the National Deception Center Police department received nearly 100,000 complaints last year. In the first quarter of this year (2018), an increase of 50 percent has been recorded.

“We received 80,000 notifications last year, but we expect the darkness to be twice as big. CNP is the most common crime in the world,” said Jan Olsson, an investigator from the center.

He warns that the figure could continue increasing if strict measures are not taken to curb the fraud. Pundits believe that the problem can be alleviated if proper steps are taken to protect the consumers. Some of these measures include introducing 3D Secure services in the e-commerce. Then, the transactions should be verified by the card provider (Visa, MasterCard etc.) through secure codes. The consumers could use a personal password to complete transactions. This could reduce the theft.

Many measures are in place to fight CNP fraud worldwide. One of the companies that have already introduced 3D Secure is Tradera. The digital marketplace has reduced card fraud by 97 percent on the platform in its first year. The company was pleased that the extra-tight security measures did not have any adverse effects on its sales or customer satisfaction.

Jan Olsson says that the majority of online stores care about the speed involved in making transactions and are less concerned about the customer’s security. He believes that joining 3D Secure, like Tradera, does not affect the business negatively.

“Tradera, is an example that does not affect the deal. I think that as a trader you can rather use its increased security as a selling point,” says Jan Olsson.

The investigator says that the Center advocates that e-shops join the technology trend. The center, he says, contacts the companies whose and then informs them of possible measures that can stop the fraud. He urges that all companies which join 3D Secure should inform their customers clearly and early enough.

Card fraud is common in western countries where a large customer base relies heavily on credit cards to make transactions. According to a report published in March 2017 by the US Payments Forum Organization, the United States records the highest number of card frauds annually. Belgium, France, Germany, Canada, and Great Britain follow in that order. Others of the top 10 list of countries with the highest rates of card defrauding are Spain and Italy.


Another report conducted by the European Fraud Map in mid-2017 shows that the UK and France accounted for 73% of the total card fraud in the continent. The report, based on the Euromonitor International and UK Card Association, further showed that the card defrauding culture has evolved in Europe, doubling between 2008 and 2017.

The sale of credit cards on the darknet is standard these days. However, CNP fraud is rampant because the stolen card information gets transmitted via breaches from large companies and organizations. Then, the data is sold on the Darknet. The Dark web has several card purchase stores which handle the illegal business. One of the leading dark web sites involved in the sale and purchase of stolen credit cards is the Cardingsajter. The police center estimates that over 4.7 billion card data records were defrauded by 2017 around the world. The cards are then sold for bitcoins.

Martin Warwich, a consultant at FICO attributed the increase in CNP fraud to the growing online spending in the world. He says that it poses new challenges for retailers and financial institutions as cyber criminals who have been disappointed by the PIN and chip have found a less risky avenue.

“Hiding amongst the growth in online purchases is great from a criminal point of view, but finding and stopping fraudulent transactions just gets tougher,” said Warwich.

One comment

  1. the Cardingsajter ?

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