WRITTEN QUESTION E-2833/00 by W.G. van Velzen (PPE-DE) to the Commission. Credit card fraud on the Internet.
Date: 2000-09-08
Institutions: European Parliament, Provisional data
Subjects: Internet, computer crime, computer piracy, electronic commerce, electronic money, fraud

8.5.2001

EN

Official Journal of the European Communities

C 136 E/103

(2001/C 136 E/118)

WRITTEN QUESTION E-2833/00

by W.G. van Velzen (PPE-DE) to the Commission

(8 September 2000)

Subject: Credit card fraud on the Internet

Credit card fraud on the Internet appears to be much more frequent than with purchases in conventional
shops. Leading credit card companies confirm that this is a major problem which could put a brake on
growing confidence in the new Internet economy.

1.
Can the Commission give a breakdown of how things stand in this area (how many instances of
fraud involving credit cards over the Internet are recorded, and what are the figures for credit card
payments in conventional shops)? Can the Commission confirm that credit card fraud in e-commerce
occurs roughly three times more frequently than with ordinary credit card transactions?

2.
Does the Commission think that this type of credit card fraud is an obstacle to the development of
e-commerce and e-Europe? How can the Commission keep the harmful consequences to a minimum and,
in this context, how does the Commission guarantee implementation of the objectives laid down at the
special ICT summit in Lisbon?

How can the Commission prevent a barrier being created, or even a competitive disadvantage, for
3.
Internet shops which, because of fraud and because the credit card companies pass on the costs of the
fraud to them, have to pay a higher commission to the credit card companies than ordinary shops, and
which are obliged to invest increasing amounts in costly anti-fraud insurance and in safeguarding payment
transactions, both in absolute terms and in comparison with conventional shops?

Answer given by Mr Bolkestein on behalf of the Commission

(6 November 2000)

1.
The Commission does not have detailed statistics on credit card fraud committed over the Internet.
The figures announced by some payment card schemes only distinguish between face-to-face and remote
transactions. Among the latter, there is no distinction between on-line transactions and the remote
transactions originated by mail, telephone or telefax. Therefore the Commission is not in a position to
confirm the statistics to which the Honourable Member refers.

2.
The Commission agrees that the growth of payment fraud over the Internet, especially linked with
the use of credit cards, is reducing consumers(cid:146) confidence and could hamper the potential of electronic
commerce. The Commission will address the concerns expressed by the European Council in Lisbon in a
series of initiatives, notably a communication on preventing fraud and counterfeiting of non-cash means of
payment. This communication will deal with the issue of Internet payment fraud and introduce a fraud
prevention action plan of concrete measures. The Commission will also launch, in the framework of the e-
Europe action plan, specific actions to increase the security of the Internet and of smart cards. Moreover,
Article 8 of the distance selling Directive (Directive 97/7/EC of the Parliament and of the Council of
20 May 1997 on the protection of consumers in respect of distance contracts (1), which entered into force
in June 2000) enables consumers to request cancellation of a payment and obtain a reimbursement where
fraudulent use has been made of a payment card in connection with distance contracts. This provision
applies also to payments made over the Internet using a card. The forthcoming communication on
creating a safer information society by improving security of networks and combating computer related
crime will map out
the
Commission is examining existing systems of chargeback, provided by card issuers on a commercial basis
or on a legal basis, which could constitute a tool for consumers victims of fraud.

legislative and other measures to increase safety of

internet use. Finally,

C 136 E/104

Official Journal of the European Communities

EN

8.5.2001

The Commission is aware of the difficulties that the retail sector is facing with respect to payment
3.
fraud, especially for on-line sales. One of the objectives of the fraud prevention communication is to
promote a high level of security of on-line payment systems, which will better protect consumers and
merchants alike.

(1) OJ L 144, 4.6.1997.

(2001/C 136 E/119)

WRITTEN QUESTION E-2837/00

by Erik Meijer (GUE/NGL) to the Commission

(8 September 2000)

Subject: Limiting the electromagnetic radiation of mobile phones through consumer information

1.
Is the Commission aware of the research carried out by Dr George Carlo in1999 on behalf of the
American telecommunications industry into the link between the use of mobile phones and radiation in
the vicinity of mobile phones and sleeplessness, headaches, a rare form of brain cancer with tumours on
the outside of the head, benign tumours around the auditory nerve and damage to human DNA (cid:129)
research which unfortunately, because of lack of further cooperation with the industry, could not be
completed?

Is the Commission aware that the United States has obliged manufacturers of mobile phones, with
2.
effect from 1 August 2000, to indicate on the side of their phones the strength of the electromagnetic
radiation in order to inform consumers of the possible risks and to enable them to choose a phone with
the lowest radiation?

Until there is tangible evidence that mobile phones present no risk whatsoever to human health, is
3.
the Commission prepared, in accordance with the precautionary principle (prevention is better than the
cure), to introduce in the European Union in the near future measures similar to those in the US, which
would result in the industry being encouraged to supply phones with the lowest possible radiation value?

Answer given by Mr Byrne on behalf of the Commission

(28 November 2000)

1.
The Honourable Member refers to work done in the United States on the health effects of using
mobile phones which has not been validated scientifically. The Commission would point out that, within
the framework of the provisions of the Treaty concerning health protection, it is working to develop an
effective policy for protecting people(cid:146)s health. Accordingly, it is supporting a number of studies aimed at
further improving knowledge of the potential and actual health effects arising from the use of electro-
magnetic radiation. These studies should in particular take account of any advances in scientific knowledge
in this field which have been scientifically validated.

Apart from this, the (cid:145)Quality of Life (cid:129) Key Action 4 (cid:129) Environment and Health(cid:146) programme under the
Fifth Framework Programme of research and technological development has made the health effects of
mobile phones one of its priorities. The projects, for which total funding of € 9 million is being provided,
are concerned in particular with the potential risk of cancer caused by exposure to electromagnetic
radiation from mobile phones.

The Commission has, in the context of the low voltage Directive (1) and the radio equipment and
2.
telecommunications terminal equipment Directive (2), drafted a mandate for the European standardisation
organisation Cenelec, asking for European harmonised standards to ensure conformity with Council
Recommendation 1999/519/EC of 12 July 1999 (3) while taking due account of standardisation at
international
level and the technical procedures customary in this field. These standards will be a
considerable help in reassuring the public that mobile phones placed on the market comply with the
exposure levels recommended in order to protect their health.