Decreased unauthorized transactions using Girocard
In Frankfurt, negligent handling of PIN numbers remains a significant vulnerability in the Girocard system, according to Andreas Peppler, head of security management at Euro Kartensysteme. Last year, over half of Girocard damages were attributed to misuse of the card and PIN at ATMs, as many consumers still keep both in their wallets, aiding criminals.
Total damages were slightly lower in 2024, though precise figures remain elusive, according to Peppler. The last official figure, disclosed in 2022, noted damages amounting to approximately 29 billion euros.
Criminals are increasingly withdrawing cash using contactless payments without a PIN, even when only the card is stolen. In 92.5% of reported cases, criminals authenticated themselves, having either the physical card and PIN or a digital card copy loaded onto their smartphone wallet.
On the contrary, incidences of sensitive customer data theft through the manipulation of ATMs are rare. Peppler reports that skimming incidents played no significant role in the first quarter of 2025 in Germany.
Counterfeit cards misused abroad were limited to 46 cases in 2024. These instances were largely confined to Brazil and the US, where a fake magnetic stripe card was employed.
The industry aims to further reduce fraud damages through increased awareness of best practices. For consumers, safeguarding their Girocard against unauthorized transactions includes immediate card blocking, prompt reporting of unauthorized transactions, secure PIN handling, use of contactless limits and transaction alerts, and preferential secure payment methods like digital wallets. German banking clients are also advised to monitor accounts closely, consider additional services, and be aware of skimming devices.
Strong customer authentication requirements for electronic payments and the use of chip technology in Girocards further reinforce banking security features in Germany.
The industry is looking to minimize fraud damages by promoting awareness of secure practices, such as immediate card blocking, prompt reporting of unauthorized transactions, secure PIN handling, contactless limits, transaction alerts, and the use of digital wallets. In the realm of finance and technology, the banking sector in Germany is emphasizing stronger customer authentication and the implementation of chip technology in Girocards to enhance security.
