Decreased instances of fraud detected with Girocard usage. - Minimized financial misappropriations linked to Girocard transactions.
Girocard Fraud Damages Down Despite Persisting PIN Security Risks
Frankfurt am Main - Girocard, the German payment card system, has seen a decrease in overall damages in 2024, according to Andreas Peppler, head of security management at Euro Kartensysteme. However, the misuse of the card's PIN number at ATMs remains a significant contributor to these damages.
Peppler attributes the majority of the damage to the theft of cards, be it through pickpocketing, burglaries, or car break-ins. Thieves can withdraw cash without a PIN at checkout counters, even when the card lacks one. In 92.5% of the damage cases, however, the criminals authenticate themselves using the physical card and a PIN or a digital card copy loaded onto their smartphones.
ATM manipulation, or "skimming," is no longer a significant concern, as criminals can no longer profit from the stolen magnetic stripe data. The shift towards EMV technology, which checks the authenticity of payment cards every time they're used, has made this method obsolete.
The industry has reported only 46 cases of counterfeit cards used abroad in 2024. Peppler emphasizes that the chip card itself is secure and the infrastructure is secure, identifying the human factor as the weakest link in the security chain.
To mitigate the risk of Girocard fraud, consumers are advised to:
- Avoid storing their PIN together with the card or any notes revealing it.
- Exercise caution at ATMs and point-of-sale terminals.
- Shield their PIN when entering it in public.
- Report lost or stolen cards promptly.
- Limit card exposure and consider contactless payment limits.
By adopting these best practices, consumers can reduce their vulnerability to fraud associated with the misuse of the PIN number, thereby significantly minimizing potential losses.
Community policy should emphasize the importance of card security, focusing on the safe handling and storage of Girocard and PIN numbers. This could involve creating awareness campaigns about the risks of PIN theft and the importance of not revealing PIN numbers.
In addition, employment policy within the finance and technology industries should prioritize the implementation and maintenance of secure payment systems, ensuring the authenticity of cards and the protection of sensitive customer data. This could involve regular employee training on security best practices and the adoption of EMV technology to reduce PIN security risks.
