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09-12-2010   Cheque Guarantee Card Scheme to close on December 31st 2011
The Irish Paper Clearing Company Limited (“IPCC”) has announced that the Cheque Guarantee Card Scheme in the Republic of Ireland (“the Scheme”) is to close on 31st December 2011 ... Read more >>

03-10-2010   IPSO Joins Panel Discussion on Modernising Payments in Ireland'Modernising Payments in Ireland' was the theme of November's Financial Services Club event which centred on NIB's recent report. Why Ireland must migrate to electronic payments, what is being done to achieve this, the challenges involved and what form payments of the future will take ... Read more >>

13-08-2010   EPC Publishes White Paper on Mobile Payments
The White Paper offers an informative read to anyone interested in mobile payments. It predominantly focuses on mobile contactless card payments, where instead of using a traditional debit or credit card, a mobile phone is simply swiped or placed close to a till to initiate a payment ... Read more >>

14-07-2010   Cash withdrawals down 11.5% as use of debit cards up 8% in 2009
2009 saw a dramatic fall off of 11.5% in the volume of cash withdrawn from ATMs in Ireland. This is the first time ever that cash levels have declined in Ireland where usage is more than double the EU average. By contrast the use of debit cards has gone up by 8% ... Read more >>

14-07-2010   Reduced Number of Cheques Confirms Payments Landscape Changing
2009 may be seen as the beginning of the end for cheques in Ireland with the volume of cheques down by in excess of 13%, more than double the reduction in 2008 and bringing the decrease to 23% (from 130m to 100m) over four years of successive decline ... Read more >>

09-02-2010   IPSO's Response to University Claims that 'Chip & PIN is Broken' 
The complex methods shown by individuals from the University would not be practical in reality. IPSO can confirm that since the rollout of Chip & PIN the industry has seen a drop of more than 60% in fraud committed on lost and stolen cards as well as skimming and counterfeit frauds. In other words, Chip & PIN has worked and has been proven to be successful ... Read more >>
11-11-2009   Payment Services Directive (PSD) Implemented November 2009
The PSD is the largest piece of payment legislation ever introduced by the EU Commission and was implemented across Europe on 1st November 2009. The legislation establishes a modern, coherent and harmonised legal framework for payment services across Europe and means a considerable step forward in terms of consumer cost and efficiency ... Read more >>

01-05-2009   Single Euro Payments Area (SEPA) Payment Schemes
SEPA is an initiative to establish an integrated European payments landscape where euro payments can circulate as easily, quickly, securely and efficiently as in national markets today ... Read more >>

01-05-2009   National Payments Implementation Programme (NPIP) Status Update
Minister for Finance commits to a high-level steering group to direct a National Payments Programme; Stamp duty reduced on payment cards, increased on cheques; NPIP Advisory Group to report to Finance Minister; Figures for 2008 show that cheque numbers in Ireland are in decline and Electronic credit and direct debit figures rise in 2008 ... Read more >>

14-4-2009   Consumers Banking Online in Ever Increasing Numbers
In early April, IPSO and the IBF published a new Online Personal Bank Report, the first of which outlined that consumers are banking online in ever-increasing numbers with more than 2.2millon customers now registered for online banking and over 30million payments made online in 2008 ... Read more >>

01-04-2009   Ireland Records a 92.5% Drop in ATM Fraud
In the first four months of 2009 Irish banks recorded only 3 incidents of ATM skimming compared with more than 40 incidents during the same period in 2008 ... Read more >>

15-12-2008   IPSO Joins New Payment Systems Market Expert Group
IPSO’s Chief Executive Pat McLoughlin was successful in becoming a member of the Group which provides for IPSO the opportunity to contribute to policy formulation at National and European levels ... Read more >>

Cheque Guarantee Card Scheme to close on December 31st 2011

The Irish Paper Clearing Company Limited (“IPCC”) today (09/12/10) announced that the Cheque Guarantee Card Scheme in the Republic of Ireland (“the Scheme”) is to close on 31st December 2011.
 
Cheques written and accepted under the Scheme guarantee, up to and including the closure date of the Scheme, and presented within six months of the date of the cheque, will be paid where the Rules of Use of the Scheme have been complied with. Cheques written and accepted after that date will not be covered by the Scheme, will be treated as regular cheques (i.e. payment will not be guaranteed) and they may be returned.

Cheque usage in Ireland has been declining rapidly as more and more people choose to make their payments electronically and only a tiny percentage of cheques are written in conjunction with a valid cheque guarantee card. Further, two of the six member banks of the Scheme gave notice in 2010 of their withdrawal from the Scheme.

In such circumstances it has been decided by IPCC that there should be an orderly wind down of the Scheme, thereby facilitating clarity and certainty for both writers and receivers of cheques and to avoid ongoing confusion. 

Key cheque facts:

  • Other than Ireland, the UK is the only other country in the world with such a scheme and this is due to close on June 30th 2011
  • The average value of a cheque written in Ireland is over €5,000. The Cheque Guarantee Card Scheme covers cheques up to €130
  • Many high street retailers no longer accept cheques at all and only a small percentage of them rely on the Guarantee itself
  • Cheque usage in Ireland has been declining since 2005, and by almost 30% in the last three years
  • Only about 1.5% of cheques are guaranteed in conjunction with a valid Cheque Guarantee Card
  • There are 1.4 million Cheque Guarantee Cards in Ireland. 55% of debit cards do not have the Cheque Guarantee function. 71% of ATM cards do not have the Cheque Guarantee function
  • There are 7.7 million payment accounts

Alternatives to guaranteed cheque payments:

  • Widely accepted alternatives to guaranteed cheque payments that are increasingly favoured include debit card payments. Debit cards in Ireland outnumber Cheque Guarantee cards by more than two to one
  • Other card functions (e.g. ATM, debit) will not be affected
  • Where a business does not accept card payments, a payer can make an electronic payment directly from his/her bank account to the bank account of that business. By January 1st 2012 all such payments will be processed and paid into the beneficiary’s account by the following business day at the latest
  • Cheques can be written and accepted as usual after the Scheme closure date, the only difference will be that the guarantee offered under the Scheme will no longer apply.
To help answer questions that businesses or consumers may have, a Cheque Guarantee Card Scheme Closure information sheet is available for download here.

IPSO Joins Panel Discussion on Modernising Payments in Ireland

IPSO’s Head of Strategic Development, Russell Burke and Vocalink’s Strategy Director, Nick Senechal, contributed to an inspiring panel discussion following National Irish Bank’s presentation of its ‘Modernising Payments in Ireland’ report at the Financial Services Club* on 2nd November 2010 in the RDS, Dublin.

The event, chaired by Michael Baume of AIB, focussed on the opportunity for Ireland to make savings of €1 billion annually (equivalent to €680 per household) by switching to electronic payment systems. Dr. Ronnie O’Toole, Chief Economist with National Irish Bank highlighted that:
  • Ireland remains one of the most intensive users of cash and cheques in Europe;
  • High cash usage also perpetuates the shadow economy and is associated with a higher level of criminal attacks on cash-in-transit;
  • Cheques are environmentally damaging and are linked to Ireland’s ‘late payments’ culture ;
  • National Irish Bank believes Ireland should develop an ambitious programme of reform to change our payments habits, targeting a 95% reduction in cheques by 2013 and a reduction in cash usage to below the European average.

IPSO’s Russell Burke noted that he shares in the vision that Ireland should fully embrace modern electronic payments systems and outlined the work of the National Payments Implementation Programme Advisory Group to date in preparing a National Payments Plan proposal for Ireland which was submitted to and accepted by the Minister for Finance in 2009. IPSO would welcome the opportunity to commence work on this with Government as soon as possible. The proposal focuses on the reduction of cash, the elimination of cheques and addressing financial inclusion.

In the meantime, IPSO has established two strategy groups, one working on plans for each of cash and cheques the other to modernise payments in Ireland. The plan to reduce cheques by 10% per annum over three years is broadly on target. Even allowing for the downturn in the economy the proportion of payments that is made up of cheques is also reducing steadily. A cash migration plan is more difficult as this requires a shift in the payment behaviour of consumers – but there are a number of actions in the plan that should help to drive down the proportion of cash transactions. To achieve a transformational change in cash behaviour in Ireland will require a Government led multi-stakeholder approach.

Vocalink’s Nick Senechal who has been involved in delivering large-scale improvement projects (e.g. Faster Payments) across much of the payments value chain in the UK said that while it is essential to remember the needs of all payment stakeholders, it is important to ‘dream big’ when it comes to modernising payments in Ireland.

A lively interactive session followed with a very healthy degree of audience participation. Chris Skinner, founder and chairman of the Financial Services Club, raised the matter of Ireland’s (unique) stamp duty on payment cards, suggesting that this could be a major impediment to the migration from cash. Russell Burke was able to confirm that IPSO and the Irish Banking Federation continue to lobby for its abolition. Siobhán Lawlor of the Department of Social Protection added that her department was keen to ensure that modernisation of payments in Ireland caters for both the needs of its customers as well as the interests of the Government and the tax payer. She added that her department is currently proactively devising a payment strategy to ensure that this is achieved which was welcomed by the other attendees.

The panel was agreed that contactless payments and mobile payments are likely to be the key technological improvements in payments that businesses and consumers can expect to be benefiting from in the coming years. To close, Michael Baume summarised the main points of the evening and thanked the attendees and the panellists for their contributions.

*The Financial Services Club is a service designed for Senior Executives and Decision Makers from any firm interested in understanding and planning for the future of Europe's financial markets.

Note: A complete set of payment statistics are available in the Industry Statistics section of this website

IPSO Joins Panel Discussion on Modernising Payments in Ireland

   Michael Baume, Chief Risk Officer at Allied Irish Banks; Russell Burke, Head of Strategic Development at IPSO; Dr. Ronnie O’Toole, Chief Economist at National Irish Bank; Nick Senechal, Strategy Director at Vocalink and Chris Skinner, Founder and Chairman of the Financial Services Club 



EPC Publishes White Paper on Mobile Payments

The European Payments Council (EPC) has published a white paper which offers an informative read to anyone interested in mobile payments. The document is likely to be of great interest to banks and other payment services providers, card schemes, businesses that accept card payments and, of course, consumers. It should also be of interest to mobile network operators, solution services providers, regulators, public administrations and industry bodies.

IPSO welcomes this initiative as the development of mobile payments will offer significantly increased convenience and give users access to faster and more efficient electronic payments.

The paper predominantly focuses on mobile contactless card payments, where instead of using a traditional debit or credit card, a mobile phone can be simply swiped or placed close to a till to initiate a payment. It also addresses the issue of remote payments where mobile phones enable users to make or receive payments regardless of location. The white paper has been written in a non-technical style to inform payment service providers, their customers and all the stakeholders involved in the payments value-chain about the EPC's initiative for mobile payments. A second edition of the paper is planned for 2011.

The EPC develops the payment schemes and frameworks necessary to realise the Single Euro Payments Area (SEPA), an EU payments integration designed to achieve the completion of the EU internal market and monetary union. Recognising the importance and potential of the mobile phone for payments, the EPC established a Mobile Channel Working Group comprising of experts in the mobile payments area. The Working Group is tasked with establishing high level principles and a framework for creating necessary standards and business rules for banks, and to work together with mobile operators and other stakeholders so that existing SEPA payment schemes (credit transfers and direct debits) and SEPA payment cards can be leveraged.

The Irish payments community is represented on the EPC Mobile Channel Working Group by Russell Burke, IPSO’s Head of Strategic Development.

More information:
  • EPC press release July 6th 2010
  • White Paper document


Cash withdrawals down 11.5% as use of debit cards up 8% in 2009

  • Ireland still biggest lover of cash in Europe

  • Government committed to establishing a high level group to prepare a National Payments Plan

 

2009 saw a dramatic fall off of 11.5% in the volume of cash withdrawn from ATMs in Ireland. This is the first time ever that cash levels have declined in Ireland where usage is more than double the EU average. By contrast the use of debit cards has gone up by 8%. Credit card usage however has reduced by 13.8% confirming society’s more cautious approach to credit and debt.

An ongoing concern however is that even with a drop in 2009 to an average of €5,644 in cash withdrawals per annum per person. This is still the highest cash figure in the EU and is more than double the EU average.

Pat McLoughlin, Chief Executive, Irish Payment Services Organisation (IPSO) said ‘Debit cards are increasingly becoming the payment instrument of choice for many consumers. They continue to grow in popularity with the number of transactions in 2009 increasing by 8% over the previous year, which further highlights their status as a preferred payment instrument’.

IPSO’s 2009 annual review reveals the beginning of the end for cheques in Ireland with the volume down by in excess of 13%, bringing the reduction to 23% over four years of successive decline.
  • As a proportion of all payments, electronic alternatives to the cheque (i.e. electronic credits and direct debits) now account for about 41% of all non-cash payments. However, in value terms these electronic payments account for only 30%. This compares poorly against EU averages which, in 2008, were 54% of volume and 96% of value.
  • While cheque volumes have declined, cheques still account for 66% of the value of all non-cash payments in Ireland versus an EU average of only 3%.

McLoughlin pointed out that Ireland remains one of very few EU countries still using cheques extensively, something that puts the country at a competitive disadvantage to its European competitors. The National Payments Implementation Programme (NPIP) responds to that competitive challenge.

Mr. McLoughlin continued ’the progression of a national strategy to move away from cash as the primary form of payment is essential. It is well documented that cash has many associated costs such as production, storage, processing, reconciliation, transportation and security. There are also societal costs such as robbery, tax evasion, money laundering and other criminal activity. These are areas where huge benefits can be achieved for everyone’.

A special NPIP Advisory Group made its final report to the Minister for Finance last year in which the establishment of a high level group to prepare and implement a National Payments Plan was recommended. The Minister accepted the recommendation and it is expected that the group will be established and a National Payments Plan will be prepared and agreed in 2010. Dr. Don Thornhill, Chairman, IPSO noted ‘The delivery of the National Payments Plan is a strategic priority for IPSO which will, in time, deliver the decisive shift to electronic payments systems for all, while at the same time, delivering significant improvements in financial inclusion. The work of the group will be the start of a process that will lead to the payments industry in Ireland becoming fully modernised and more in line with other EU member states, ensuring Ireland’s position as a true competitor within the EU’.


Reduced number of cheques confirms payments landscape changing

  • Ireland yet to enjoy full benefits of more cost efficient payment solutions

  • Government committed to establishing a high level group to prepare a National Payments Plan


2009 may be seen as the beginning of the end for cheques in Ireland with the volume of cheques down by in excess of 13%, more than double the reduction in 2008 and bringing the decrease to 23% (from 130m to 100m) over four years of successive decline.

Pat McLoughlin, Chief Executive, Irish Payment Services Organisation (IPSO) said ’The ultimate end of the cheque for everyday payments is inevitable. This is now recognised in Ireland where the Government approved last year the concept of a National Payments Implementation Plan (NPIP). Businesses now have to plan and prepare to update legacy, cheque-based accounting processes with electronic ones. Apart from being faster, more secure and more cost-effective, modern, electronic payment systems give the beneficiary certainty of payment, particularly important in these difficult, economic times.’

IPSO’s 2009 annual review highlights that:
  • While cheque volumes have declined, cheques still account for 66% of the value of all non-cash payments in Ireland versus an EU average of only 3%.
  • As a proportion of all payments, electronic alternatives to the cheque (i.e. electronic credits and direct debits), now account for about 41% of all non-cash payments. However, in value terms these electronic payments account for only 30%. This compares poorly against EU averages which, in 2008, were 54% of volume and 96% of value.
  • The value of cash paid out through ATMs in Ireland last year declined for the first time ever, by a significant factor of over 11%.
  • In the other direction debit card usage increased by 8%. An ongoing concern however is that even with a drop in 2009 to an average of €5,644 in ATM cash withdrawals per annum per person, this remains the highest cash figure in the EU and is more than double the EU average.

Mr. McLoughlin continued ‘the progression of a national strategy to move away from cash as the primary form of payment is essential. It is well documented that cash has many associated costs such as production, storage, processing, reconciliation, transportation and security, including security violations such as tiger kidnappings. There are also societal costs such as robbery, tax evasion, money laundering and other criminal activity. These are areas where huge benefits can be achieved for everyone’.

He pointed out that Ireland remains one of very few EU countries still using cheques extensively, something that puts Ireland at a competitive disadvantage to its European competitors. The NPIP responds to that competitive challenge.

A special NPIP Advisory Group made its final report to the Minister for Finance in 2009 in which the establishment of a high level group to prepare and implement a National Payments Plan was recommended. The Minister accepted the recommendation and it is expected that the group will be established and the National Payments Plan will be prepared and agreed in 2010. Dr. Don Thornhill, Chairman, IPSO noted ‘the delivery of the National Payments Plan is a strategic priority for IPSO which will, in time, deliver the decisive shift to the use of electronic payments systems for all, while at the same time, delivering significant improvements in financial inclusion. The work of the group will be the start of a process that will lead to the payments industry in Ireland becoming fully modernised and more in line with other EU member states, ensuring Ireland’s position as a true competitor within the EU’.


IPSO’s Response to Claims from the University of Cambridge that “Chip & PIN is Broken”

2010-02-09
By Úna Dillon

The BBC ran a programme recently in which individuals from the University of Cambridge claimed that Chip & PIN is broken. It is our opinion that the complex method shown by individuals from the University would not be practical in reality in Ireland.

 

Similar claims were issued by the Cambridge team just prior to the roll out of Chip & PIN in 2004 in which it claimed that Chip & PIN would not work. This was proven not to be the case. IPSO will shortly be issuing its fraud figures for 2009 however we can confirm that since the rollout of Chip & PIN cards the industry has seen a significant drop of more than 60% in fraud committed on lost and stolen cards as well as skimming and counterfeit frauds. In other words, Chip & PIN has worked and has been proven to be successful.

 

Commenting on the claims, Úna Dillon, Head of Card Services at the Irish Payment Services Organisation stated that; “We could simply compare the claims with a so-called expert suggesting that house alarms can be broken. It may be possible to put them out of action however in reality they are an excellent deterrent, continue to prevent break-ins in our homes and they continue to be updated to the latest technology. In a similar way Chip & PIN can be attacked but to date there have been no breaches to the technology as suggested by this recent report.


IPSO takes card fraud very seriously and deals with the live issues affecting people in the day to day payments environment. If we find, from real statistics, that cards are being compromised, we work with the industry stakeholders to ensure that identified weaknesses are removed and solutions implemented”.

 

It is true to say that the type of fraud described in the programme can be detected by the banks’ fraud systems. In addition, under the banking code all card issuers are obliged to investigate every fraud claim. Where there is evidence of fraud, customers will always be reimbursed. The reputation of the payment card industry is based on the reliability of the cards systems and on customer protection. IPSO continues to work with banks, card processors, retailers and consumers to make them aware of the latest fraud prevention advice through the work of the SafeCard Task Force.

 

IPSO continually works to raise awareness of security advice and on how to protect against card fraud through media interviews, press releases, fraud seminars and conferences, specialised workshops and website updates. While criminals persist in testing the payments systems, IPSO monitors the activity and continues to take the necessary preventative measures in partnership with its members.

 

Card fraud figures in Ireland are well below the European average at 0.06% fraud to turnover, compared with latest figures of 0.14% for the EU. This low fraud figure is as a result of the fraud prevention work being done by the industry as a whole as well as the diligence of our cardholders and merchants.

 

For information on current payment fraud issues and fraud prevention tips see www.SafeCard.ie


Payment Services Directive (PSD) Implemented November 2009

2009-11-11
By Michael O’Neill

The PSD is the largest piece of payment legislation ever introduced by the EU Commission and was implemented across Europe on 1st November 2009. The legislation establishes a modern, coherent and harmonised legal framework for payment services across Europe and means a considerable step forward in terms of consumer cost and efficiency. The directive defines who can offer payment services and the respective rights of payment service providers and users. The directive lays down timelines for processing payments and also defines the information that must be provided with payments.

Single Euro Payments Area (SEPA) Payment Schemes

2009-05-01
By Michael O’Neill

The Single Euro Payments Area (SEPA) is an initiative to establish a truly integrated European payments landscape where euro payments are subject to a uniform set of standards, rules and conditions and can circulate as easily, quickly, securely and efficiently as in national markets today.

SEPA Credit Transfer services launched in January 2008 and over 4,300 banks across Europe are now participating in the scheme. It means that payments can be made to any of these banks as quickly as a payment between banks in Ireland today.

The European Payments Council agreed at its March Plenary meeting to confirm the launch date for SEPA Direct Debit as 1st November 2009. From this date Banks across Europe will offer cross border direct debit services to their customers.

National Payments Implementation Programme (NPIP) Status Update

2009-05-01
By Russell Burke

Highlights:
  • Minister for Finance commits to a high-level steering group to direct a National Payments Programme
  • Stamp duty reduced on payment cards, increased on cheques
  • NPIP Advisory Group to report to Finance Minister
  • Figures for 2008 show that cheque numbers in Ireland are in decline
  • Electronic credit and direct debit figures rise in 2008
Payment card usage, debit in particular, continues to grow The NPIP was established to deliver a more efficient and cost effective payments environment in Ireland. Ireland uses electronic payments considerably less than most of its EU counterparts. A significant shift to electronic payments from the current levels of cash and cheques could realise benefits to all stakeholders in the payments business. Various estimates put the size of the benefit in the order of one billion euro per annum. Such an annual saving would increase Ireland’s competitiveness.

The NPIP has three core priorities:
  1. Cash reductio
  2. Elimination of cheques
  3. Increased financial inclusion
Led by the Department for Finance, the activities of the NPIP Advisory Group are focused on the preparation of a report to the Minister for Finance which will be making recommendations to enhance the NPIP process, the establishment of an appropriate governance structure and a number of measures that will deliver immediate and quick benefits to the payments infrastructure in Ireland.

In the meantime, the commitment of the Minister for Finance to the objectives of the NPIP has been manifest in several ways. The budget speech in October 2008 included measures to reduce the stamp duty on Debit and ATM cards, while further increasing duty on cheques to 50c. Minister Brian Lenihan also announced the ‘establishment of a high-level group comprising representatives from the main stakeholders to direct the preparation and implementation of a national payments programme’. The subsequent ‘Government Guarantee Scheme’ obliges participating banks to make biannual progress reports on a number of issues including the delivery of the national payments strategy, the promotion of financial inclusion, and the development of financial education. Finally, the ‘Recapitalisation Programme’ includes an obligation to provide and promote ‘basic or introductory bank accounts’. In support of this initiative the Government will arrange that stamp duty will not apply to cash cards for these accounts.

In terms of progress in moving from cash and cheques to electronic payments, figures for 2008 are encouraging. Having remained fairly static for many years, cheque numbers finally dropped in 2008, showing a 6%+ decline on 2007 figures. While some of this can no doubt be attributed to the drop in economic activity, the figure is complemented by an increase in electronic payments, with electronic credits rising by over 15% and debits by about 7%.

The number of card transactions also grew substantially with transaction numbers increasing by 20% in 2008. However, in terms of total value, the value of cash taken out of ATMs in Ireland each year still exceeds the value of card payments by in excess of €3 billion per annum. With over €28 billion being pumped out of Irish ATMS each year, Ireland is the highest user of ATM cash in the EU when measured on a per capita basis. Indeed, the figure for Ireland is more than double that of the EU average and more than 12 times the level of Denmark. This high use of cash is an issue that needs to be addressed, particularly in the current economic climate, as cash incurs a lot of direct and indirect costs. On the positive side, the value of cash withdrawn at ATMs in Ireland increased by only 2% in 2008 whereas in each of the two previous years the increase was 13%.

Consumers Banking Online in Ever Increasing Numbers

2009-04-14
By Úna Dillon

In early April, IPSO and the IBF published a new Online Personal Bank Report, the first of which outlined that consumers are banking online in ever-increasing numbers with more than 2.2millon customers now registered for online banking and over 30million payments made online in 2008.

At a press conference held at the Irish Banking Federation offices to launch the new report Úna Dillon, IPSO’s Head of Card Services commented that “Online banking is facilitating the migration from cheques and other paper-based payment methods to electronic payments. The move to electronic payments is vital in ensuring Ireland’s competitiveness and efficiency within the wider European market and is a key objective of the National Payments Programme which is supported by the Department of Finance.”

The increase in usage of online banking between 2007 and 2008 is quite pronounced, with a 31.6% rise in the number of online payments to 30.7 million, equivalent to 84,000 online payments per day; while a 33.6% increase to 123 million was recorded in the number of times customers accessed their account balances online.

At the press conference IBF Chief Executive, Pat Farrell advised members of the press that we “can see from the data compiled to date that online banking is on a significant growth path in Ireland. Comparative figures for 2007 show that the average user here made 14% more online payments and 20% more online enquiries than their UK counterpart.” Farrell added that “in a leading online adopter like Norway the average customer made around three times more payments online – indicating that there is considerable scope for further growth. A range of financial institutions here provide a wide choice of online banking services to facilitate this growth and are continuing to invest in and expand the range of services available.”

Ireland Records a 92.5% Drop in ATM fraud

2009-04-01
By Úna Dillon

 

In the first four months of 2009 Irish banks recorded only 3 incidents of ATM skimming compared with more than 40 incidents during the same period in 2008. This reduction in criminal activity here means that Ireland stands out amongst its European counterparts while according to figures issued on 9th April 2009 by the organisation, EAST[1] (the European ATM Security Team) there has been a 149% rise in ATM related fraud attacks across Europe. The reverse trend for Ireland is indicative of the coordinated preventative measures deployed by Irish ATM owners and Card Issuers, such as anti-skimming devices and fraud monitoring tools.


IPSO’s ATM Fraud Incident Report facilitates the sharing of information regarding ATM skimming incidents amongst IPSO’s members. Irish Card Issuers are made aware as soon as ATM incidents such as skimming attacks are reported and this has proven to be very effective in ensuring the prevention of fraud spend on customers’ cards and an overall reduction in related fraud losses. This combined with the use of anti-skimming devices across the country has helped cut down on the number of incidents that have occurred this year to date.

In its April 2009 report EAST suggests that while the year on year fraud loss figures show a 149% increase for Europe overall, the half year figures show a declining trend, with international losses due to card skimming falling by 18% in the second half of 2008. This would indicate that the rollout of Chip & PIN cards across Europe continues to be effective. The issue remains with respect to international losses while criminals continue to use cards to illegally withdraw cash from ATMs in countries where Chip & PIN has not yet been rolled out.

IPSO is pleased with the overall drop in ATM fraud in Ireland but continues to treat the matter as a high priority. Skimming and general fraud attacks at ATMs continue to be monitored. Cardholders are continually reminded to cover their hand when keying in their PIN at an ATM. More information on ATM fraud and its prevention is available on the SafeCard website at www.safecard.ie

[1] EAST was responsible for setting up a framework network structure to improve co-operation with industry, law enforcement, and in particular Europol, in order to achieve awareness and better results in the fight against organised cross-border crime.

IPSO joins new Payment Systems Market Expert Group

2008-12-15

The European Commission announced the establishment of a Payment Systems Market Expert Group on the 15/12/08 and invited applications. The tasks of the Group are:

  1. To assist the Commission in the preparation of legislative acts on policy initiatives regarding payment systems, including fraud prevention measures related to payment industry and users.
  2. To provide insight concerning the practical implementation of that Policy.
  3. To exchange views on up to date best practices and ensure a monitoring of potential issues of concern for the market.


IPSO’s Chief Executive Pat McLoughlin was successful in becoming a member of the Group which provides for IPSO the opportunity to contribute to policy formulation at National and European levels.


 





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