G&D | EMV Introduction and Anti-Fraud Developments



EMV Introduction and Anti-Fraud Developments

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No opportunity for skimming

The experiences of countries that have already migrated are interesting cases to assess the security benefits of EMV migration. Europe is by far the most advanced in this process. Great Britain, France, and Germany have converted almost entirely to EMV.

The European police authority, Europol, has a generally positive assessment of the launch of EMV. Despite an increasing circulation of more than 700 million debit and credit cards, cases of fraud at EU payment terminals and ATMs have fallen continuously since the start of EMV migration in 2008.

Europol considers the security of EMV terminals in ATMs and at POS in the EU to be so high that cases of fraud could only take place in countries that do not yet have the same level of security, where magnetic strip cards are still being used for payment and therefore represent the weakest link in the chain. They still have a magnetic strip enabling bank customers to use their cards in these countries too. According to Europol, introducing EMV globally would change this and practically bring an end to fraud in retail outlets and at ATMs abroad.

Spotlight on global chip circulation

The example of Belgium shows that it can indeed be done. It was the first country to have followed the recommendation of Europol and the European Central Bank to use exclusively chip-based debit cards. The magnetic strip was therefore deactivated and a geo-blocking solution created, which does not permit transactions initiated outside the EU. The potential for card misuse abroad is greatly reduced that incidents of skimming in Belgium have fallen to a level approaching zero.

This procedure shines a light not only on successful protection against skimming fraud in a global EMV world. It also reveals what could be possible even today if countries that have already migrated cooperate with each other. The Belgians’ complete openness to this solution is underlined by a representative survey: Sixty % of those surveyed supported geo-blocking.