Payment systems: Commission sets out new plan to fight fraud
European Commission - IP/04/1291 27/10/2004
Brussel, 25 October 2004
The European Commission has published a new Fraud Prevention Action Plan (FPAP) to fight payment fraud between now and 2007. It aims to increase confidence in non-cash payments – for example those made by credit card and bank transfer - thus encouraging cross-border purchases and boosting e-commerce. The new FPAP builds on its predecessor for 2001-2003 and will complement the Directive on payment services - which the Commission will propose in 2005 - in underpinning a Single Payment Area in the EU (see IP/03/1641, MEMO/03/248) with the ultimate aim of making cross-border payments as convenient, quick and secure as domestic ones.
Internal Market Commissioner Frits Bolkestein said: “Without secure payment systems, you cannot have a modern economy or a functioning Internal Market. In the EU payment fraud is exceeding one billion euros annually. Fraudsters come up with new scams and the payment industry needs to stay one step ahead. That means vigilance and reinforced cooperation within and beyond the EU”.
Priorities in the new FPAP are the security of payment products and systems, co-operation between public authorities and the private sector, the integration of new Member States in the EU fraud prevention framework and closer ties with non-EU countries. It points to emerging threats and urges the rapid EU-wide completion of the changeover to more secure chip cards.
From 2001-2003, under the first FPAP, the growth of payment fraud slowed down, but prevention must be reinforced to maintain momentum against criminal activities such as use of counterfeit cards in cash machines, on-line fraud, data hacking and identity theft.
Action under the new FPAP will include:
The new Action Plan and a report evaluating the earlier
one, are at: