WRITTEN QUESTION E-3328/02 by Toine Manders (ELDR) to the Commission. Cash card fraud.
Date: 2002-11-25
Institutions: European Parliament, Provisional data
Subjects: Netherlands, computer crime, consumer protection, data protection, electronic money, fight against crime, fraud, industrial counterfeiting

C 268 E/30

Official Journal of the European Union

EN

7.11.2003

Does the Commission think that, by making salvaging the ‘Le Joola’ a priority, the Senegalese Government
meets the ownership criterion?

Will the Commission examine whether salvaging the ‘Le Joola’ can be funded under the EDF as part of
transport and infrastructure improvements?

Answer given by Mr Nielson on behalf of the Commission

(7 January 2003)

Restoring the maritime link between Dakar and Ziguinchor is of great economic and political importance
for the Casamance region and Senegal in general. However, salvaging and repairing the Joola does not
seem to be a cost-effective way of restoring this link and therefore alternatives will have to be found. The
Government of Senegal is apparently focusing on the purchase of two new ships with the help of the
German cooperation and other possible donors, which could take around two years to realize. In the
interim the Government is looking for a private operator to supply and manage its own ship.

Within the framework of the 9th European Development Fund, resources have been earmarked for two
major priorities, roads with regional importance and water and sanitation.

(2003/C 268 E/034)

WRITTEN QUESTION E-3328/02

by Toine Manders (ELDR) to the Commission

(25 November 2002)

Subject: Cash card fraud

There is currently talk in the Netherlands of large-scale cash card fraud (see, inter alia, ANP press report of
18 October 2002). PIN number fraudsters appear to copy the data from cash cards by placing a small box
in cash dispensers and then transferring the data to a blank card. As soon as they have obtained the PIN
code of their victim by cracking or copying the code, the victims’ accounts are quickly cleared by phantom
withdrawals made with the help of these falsified cards, while the unsuspecting account holders still have
their cash cards in their possession. Banks are covering up the situation for fear of losing their customers,
and assuring clients that electronic means of payment and the security devices protecting them are fraud-
proof.

Consumers have become largely dependent for their financial transactions on electronic banking and
electronic means of payment, and are now in danger of becoming victims of these. The rise in the number
of recent cases both at home and abroad and the amounts involved make new policies both desirable and
necessary. The introduction of the euro and the agreement reached earlier this year by European banks
whereby cash can be withdrawn free of charge from dispensers throughout Europe using a national cash
card are positive developments in European financial policy, which are, however, being overshadowed by
this fraud. The cash card fraud is thus counteracting the positive effect of European policy in this area.

Electronic payment has a significant role to play in the completion of the single financial market in 2005.
A loss of consumer confidence in electronic payment could constitute a serious obstacle to the completion
of this aspect of the single market. The situation in the Netherlands thus has European implications,
making this a European problem requiring a clear European solution.

1.

Is the Commission aware of the above situation?

Does the Commission agree with the conclusion that this large-scale fraud is undermining consumer
2.
confidence in electronic payment and in so doing preventing the completion of the single financial
market?

Is the Commission prepared to take action in response to the situation described above and, if so,

3.
what action?

7.11.2003

EN

Official Journal of the European Union

C 268 E/31

Answer given by Mr Bolkestein on behalf of the Commission

(8 January 2003)

1.

The Commission is aware of the situation mentioned by the Honourable Member.

2.
The Commission agrees with the Honourable Member’s conclusion. The type of fraud described,
where a blank counterfeit card is created and the PIN code is captured through different means (‘shoulder
surfing’, use of hidden cameras, etc.) is unfortunately not taking place only in the Netherlands and the
modus operandi described is well known by payment industry investigators and law enforcement officers.

In order to reduce counterfeit fraud, the payment card schemes and the banks are deploying substantial
resources in order to introduce chip cards in all Member States and in many third countries as well. The
data on the card will no longer be stored in the magnetic stripe, but in the chip. This will make their
duplication extremely difficult. The payment card schemes and the banks are committed to introduce chip
cards in all Member States by 2005. The late deadline is due to the huge number of cards to be re-issued
and of the equipment (terminals, automated teller machines, etc) to be replaced or modified.

3.
As a result of Resolution No C4 0455/98 of the Parliament, the Commission is taking action to
increase the security of payment transactions. To prevent fraud and counterfeiting of non-cash payments,
the Commission adopted in February 2001 a three-year Fraud Prevention Action Plan based on a
the
partnership among all stakeholders.
Commission and other parties should undertake. Security improvements are the main priority of the
Action Plan, which supports the introduction of the highest economically viable level of security.

It provides for five main areas and 11 main actions that

Discussions on security issues, including on the progress in the migration to chip cards in the Union, take
place regularly at the meetings of the Union Fraud Prevention Experts Group, the steering group for the
implementation of the Fraud Prevention Action Plan.

The Commission will organise in 2003 a Conference on the security of payments in the Internal Market,
with a view to improve information on the security of modern payment products and systems.

By the end of 2003, the Commission will report to the Parliament and the Council on the progress
achieved with the Fraud Prevention Action Plan and propose, if necessary, further action.

The eEurope Smart Cards Initiative of the Commission also provides for actions aimed at stimulating
financial
institutions to use chip cards for payment applications (supporting the remedy described in
point 2 above).

(2003/C 268 E/035)

WRITTEN QUESTION E-3344/02

by Erik Meijer (GUE/NGL) to the Commission

(26 November 2002)

Subject: Delay in publishing a compulsory warning about the possible development of infantile botulism in

babies as a result of their being fed honey

1.
Is the Commission aware that children aged under twelve months whose intestinal flora has not yet
fully developed may, as a consequence of being fed honey, become infected with bacteria which cause
botulism and that such infantile botulism may result in amyosthenia and paralysis or even death?

2.
Is the Commission also aware that the third case in which, in the Netherlands, a connection was
established between the death of a baby and consumption of honey in spring 2002 resulted in the
Netherlands Food Inspection Office agreeing to introduce an obligation that a warning should be printed
on the labels of jars containing honey that it should not be fed to babies aged under twelve months?