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Girocard Fraud in Germany: PIN Management Remains Major Concern Despite Slight Decrease in Damages
In a recent assessment by Euro Kartensysteme, the company responsible for payment card security in the German banking industry, it was revealed that while card thefts and related fraud using Girocard have seen a slight decrease in 2024, the security vulnerabilities persist, particularly when it comes to the handling of PIN numbers.
Andreas Peppler, head of security management at Euro Kartensysteme, stated that loose handling of PIN numbers remains the most significant entry point for damages in the Girocard system. This occurs when consumers keep both their cards and PINs together in their wallets, making it easier for criminals to misuse stolen cards at ATMs.
Despite the slight decrease in damages, Peppler refused to provide the specific figures for 2024, citing unavailability. The last officially reported figure was from 2022, when damages amounted to around 29 million euros.
Criminals, according to Peppler, withdraw cash "professionally" either through pickpocketing, burglaries, or car break-ins, even when the stolen cards lack PINs. While card thefts without PINs account for a smaller percentage of damages compared to the misuse of cards with PINs, these cases are on the rise.
In 92.5% of the damage cases, criminals authenticate themselves, meaning they possess the physical card along with the PIN or have managed to obtain a digital replica of the card and load it onto their smartphone wallets.
Manipulation of ATMs to steal sensitive customer data is no longer a worrisome trend, as reported by Peppler. He explained that skimming is no longer attractive due to the ineffectiveness of magnetic stripe data for criminals. In the first quarter of 2024, no reports of manipulated ATMs were received in Germany.
Card duplicates pose little threat worldwide, as the prevalence of EMV technology has rendered magnetic stripe data virtually useless. Euro Kartensysteme only identified 46 cases in 2024 where counterfeit cards were misused abroad, with the last reported cases occurring in Brazil and a few in the US.
Peppler emphasized that while the chip card is secure, the human element remains the weakest link in the system. With more education, the industry hopes to further reduce fraud damages.
Key Facts:
- Despite a slight decrease in damages, card thefts and related fraud involving Girocard in Germany remain a concern.
- Over 92.5% of damages occur when criminals authenticate themselves, possessing the physical card with PIN or digital replicas.
- Manipulation of ATMs is no longer a significant concern due to the ineffectiveness of magnetic stripe data.
- Human error, such as poor PIN management, continues to be the most significant vulnerability in the system.
- The market share of Girocard in Germany is 75%, making it the dominant payment card brand.
As the industry continues to evolve and adapt to new security threats, education and stricter adherence to PIN management practices are essential to minimize fraud losses.
- The education of consumers on proper PIN management becomes increasingly crucial in the German banking industry, as loose handling of PIN numbers remains the primary weak spot for Girocard fraud, accounting for over 92.5% of damages.
- In the realm of finance, technology, and the industry, the focus on reducing fraud damages necessitates a two-pronged approach—embracing advanced security measures and promoting educational initiatives on best practices for PIN management.
