Consumers Awareness Raising on Non-Cash Payment Fraud (2012)

General objective of the project “Consumers awareness raising on non-cash payment fraud” – to contribute to prevention on non cash fraud by developing and disseminating educational material for consumers in cooperation with private and public sectors.

The project will fill the gap in informing and educating various target groups of consumers on safety and possible risks of non-cash payments and contribute to the prevention of fraud (identity theft, phishing, skimming, hacking, etc.) in the abovementioned area. 

The project is directed to prevention and fight against financial crime through  awareness raising of consumers on non-cash payment fraud and communication of security issues. Need for such project is determined by some reasons:
1) increase of non-cash payment fraud (identity theft, phishing, skimming, hacking,etc) in EU and especially in Central and eastern European countries, including Lithuania;
2) increase use of non-cash payments face-to-face and online;
3) lack of consumer knowledge on fraud on non-cash payments;
4) insufficient trust on non-cash payments;
5) rapid technological developments and criminals adaptation to a fast changing environment.

EU-wide data on fraud on non-cash payments are not available, but, it is estimated that card fraud in the EU reaches about 1 billion euros per year. The most important challenges in this area – identity theft, also phishing, data hacking, etc. Results of Eurobarometer 264 shows that 6 European citizens out of 10 think that identity fraud is widespread in their country. Citizens of 10 New Member States are more dissatisfied with actions taken at a national level in their country: 56 per cent consider these actions to be insufficient compared to average in EU 15 (48 percent). 53 percent of consumers in Lithuania think that actions taken on national level are insufficient.

The use of non-cash payment instruments by consumers is rapidly growing, especially in New Member States. Consumers also  purchase more products and services through internet and pay by  non-cash payment means. By using them consumers tackle problems of security of operations, identity theft. Consumers claims analysis of 2006 in Lithuania showed that about  14 per cent of claims on financial services are related with fraud on non-cash payments.

Especially vulnerable group which is touched by the problem of fraud – young people starting use non-cash payments. In accordance with research done by the Ministry of Social Security and Labour about 76 percent of 15-17 years young people do not know  about risks on non-cash payments.

In this situation consumers as the most effected group lack of efficient instruments of consumer protection: consumer information and education on fraud prevention, risks on non-cash payments, also appropriate measures to assist victims.

The project will contribute to prevention of fraud on non-cash payments, because due to the project  activities consumers will be able to evaluate potential financial risks, to apply their legal rights,to identify secure operations, know where get reliable advice.

Specific objectives of the project: carry out a research, consisting of two segments:
a)sociological survey on consumer knowledge on non cash fraud and how to avoid it;
b) consumer complaints; present research results to the public by organizing a press conference, sending research material to the private-public stakeholders; prepare and distribute educational kit (video game followed by competition for pupils, cartoon, brochure, live radio coverages) directed to various target groups;
4. to prepare information package on the best practice and distribute through channels in EU; create special website for placement of results of project activities ; organize international workshop, involving public-private stakeholders from Lithuania, Latvia, Estonia.

The project foresees development and distribution consumers educational standard on prevention of non-cash fraud, involving in the process public – private partnership, i.e. The Police Department, Lithuanian association of banks and Lithuanian Consumer Institute.

With financial  support from the Prevention of and Fight against Crime Programme of the European Union.

More information about the project’s results you can find in the brochure:


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