Abstract
The security of non-cash payment instruments is a key factor for the economic stability of the European Union. Crime with electronic payment instruments and related illegal activities affect the Digital Single Market and the financial interests of the European Union. Organized crime groups generate € 1.44 billion a year in the Community from payment card fraud, with illegal proceeds reinvested in illegal activity and not recovered. The current scientific article aims to assess an ex-post impact of European policies for combating payment card fraud and counterfeiting on the stakeholders, in particular payment process participants. The goal is to establish the policy efficiency by analyzing the cost and benefits of the specific policy for the participants. A methodology has been developed, based on a multidisciplinary approach. The following scientific methods are used: case study; research and review of legal and other documents; content analysis of strategic and annual reports and assessments; analysis of qualitative indicators and secondary analysis of empirical data. The results of the survey show that the cost of crime prevention and control measures is high, but responsibility for costs is shared between the public and private sectors, and consumers. Strengthening cooperation between stakeholders will lead to higher policy benefits and lower costs.
Highlights
The penetration of information and communication technologies in all sectors of the contemporary world, incl. the banking sector, becomes an integral part of people's lives
The data from the European Central Bank show that payment transactions made via the Internet, fax, telephone, and mail are subject to higher levels of fraud than traditional payment methods, most of which are made outside SEPA
The impact of payment card fraud can be measured in terms of the economic, financial, social, psychological, and moral nature of the adverse effects for each of the stakeholders and for society as a whole
Summary
The penetration of information and communication technologies in all sectors of the contemporary world, incl. the banking sector, becomes an integral part of people's lives. Payment card fraud and related illegal activities affecting the financial interests of the European Union represent significant losses for both the Union and society as a whole. They are low-risk and high-profit criminal activity. Illicit proceeds are reinvested in illegal activities and are not recovered [2] This analysis focuses on bank card fraud, which is part of the crime with electronic payment instruments. For the purposes of the study, it is divided into two groups: "card-present" fraud at ATM and POS terminal (CP) and "card-not-present" fraud on the Internet, fax, telephone and mail (CNP)
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