WRITTEN QUESTION E-0475/03 by Erik Meijer (GUE/NGL) to the Commission. Fraud-sensitive electronic payments as a result of the possibility of criminals to emptying bank accounts.
Date: 2003-02-20
Institutions: European Parliament, Provisional data
Subjects: action programme, area of freedom, security and justice, computer crime, electronic money, fraud

13.3.2004

EN

Official Journal of the European Union

C 65 E/31

cooperation in social matters. The latter spells out commitments to promoting fundamental labour rights,
taking into account the rules of the International Labour Organisation (ILO). It sets out among priority
measures for cooperation in particular (Article 44): promoting human development, the reduction of
poverty and the fight against social exclusion; developing and modernising labour relations, working
conditions, social welfare and employment security; giving priority to education and training programmes
aimed at vulnerable social groups. The agreement with Chile will in this respect serve as a model in
current negotiations with Mercosur.

Moreover core labour standards are part of the human rights clause, which forms part of bilateral
co-operation agreements. In its Communication on The European Union’s Role in Promoting Human
Rights and Democratisation (2), the Commission proposed as part of the political dialogue discussing with
partner countries how ratification of the fundamental human rights instruments and other rights-based
international agreements (in particular ILO conventions) and their effective implementation could be
pursued. The Commission believes that respect for social rights and core labour standards contribute to
durable and equitable social and economic development.

2.
In its communication, the Commission presented a comprehensive strategy, suggesting action at
European and international levels, by public and private actors alike, and in all relevant policies: social,
external relations, development and trade. The Community strategy aims to create incentives and build
capacity for countries to implement and respect core labour standards globally and in all sectors of the
economy, including the flower trade in Latin America and Africa.

A concrete step has been the adoption by the Council of a revised generalised system of preferences (GSP)
scheme. The social incentive scheme (cid:1) which grants additional preferences to countries that respect the
core labour standards (cid:1) was improved and the basis for temporary withdrawal of the general preferences
was extended to cover grave and serious infringement of all ILO core conventions, including those related
to child labour.

No specific initiatives are in place in the development and co-operation framework to improve

3.
working conditions for flower workers.

However in general terms, the Commission communication on core labour standards suggested increased
funding from bilateral sources and ILO technical assistance programmes for the promotion of core labour
standards. Funding has been allocated under the European initiative for Democracy and Human Rights
(Chapter B7-7 of the EU budget) for projects tackling the issue of trafficking, child labour and slavery. Such
support complements the assistance channelled through country-specific programmes,
in which social
development and labour standards are integral elements.

(1) COM(2001) 416 final.
(2) COM(2001) 252 final.

(2004/C 65 E/031)

WRITTEN QUESTION E-0475/03

by Erik Meijer (GUE/NGL) to the Commission

(20 February 2003)

Subject: Fraud-sensitive electronic payments as a result of the possibility of criminals to emptying bank

accounts

Is the Commission aware that criminals are constantly finding new ways of obtaining access to the

1.
secret PIN codes of bank account holders, for instance by:

(a)

stealing bank cards and threatening the victims with further violence if they do not disclose their PIN
codes;

C 65 E/32

Official Journal of the European Union

EN

13.3.2004

(b) keeping permanent watch on ATMs to find out the codes being used before people take their

banknotes and then seizing the bank cards and using them to obtain cash;

(c)

copying of PIN codes and account numbers by staff at automatic petrol pumps or in shops and
restaurants where customers’ card payments are registered, after which cash can be withdrawn using a
counterfeit card.

2.
Is the Commission aware that a new stratagem has recently been seen in the Netherlands where
letters are stolen from private letter boxes, existing accounts are transferred from one name to two names,
after which the second person applies for a PIN code and bankcard and access to the account by phone or
computer, money is then transferred from savings accounts to current accounts and finally the current
accounts are emptied using the bank cards obtained?

3.

Are these problems greater in some Member States than in others? How can this be explained?

Has the stratagem described in paragraph 2 now spread to other EU Member States? Have the

4.
Member States concerned developed effective safeguards?

5.
Is the Commission leaving it up to individual banks, national banking advisory bodies and national
legislators to find solutions and compensation arrangements for account holders affected or is it
contributing, by pooling experience in this area at EU level, to the development and introduction of
security measures that are uniform and effective for all EU Member States?

Source: De Volkskrant newspaper, 7 February 2003.

Answer given by Mr Bolkestein on behalf of the Commission

(1 April 2003)

Yes, the Commission is fully aware of the stratagems mentioned by the Honourable Member, as well
1.
as of other ways in which cards, PIN codes and bank accounts are compromised. The modus operandi
described are well known by payment industry investigators and law enforcement officers.

In general, techniques of identity theft (which consists in the misuse of personal data to impersonate
2.
somebody else and abuse of his/her bank facilities) are well known by payment industry investigators and
law enforcement officers. The technique used in this specific case (stealing letters from mailboxes to obtain
personal data and then asking for a second card and PIN code, phone-banking code or e-banking password
in order to empty the bank account) is one way of committing identity theft. The Commission is aware
that identity theft is the fastest growing type of payment fraud in some Member States. It was not yet
aware that the modus operandi described is particularly used in the Netherlands.

3.
The problem of payment card fraud is particularly relevant in the United Kingdom, and in countries
like Germany, Spain, France, Italy and the Netherlands (i.e. the Member States where the largest card
issuing banks are located or where foreign counterfeit cards are more often used in shops). The problem of
identity theft is particularly relevant in the United Kingdom.

The specific technique used in the Netherlands has been used also in the United Kingdom. The
4.
Commission has no information on the use of this specific technique in other countries. In the United
Kingdom, the Credit Industry Fraud Avoidance System (CIFAS) (1) is combating identity theft. The British
Cabinet office issued in July 2002 a report on identity theft.

5.
The Commission agrees with the Honourable Member that, notwithstanding the considerable efforts
of the national private and public sectors, there is a need for a more co-ordinated approach to the
problem. Also as a result of Resolution no. C4 0455/98 of the Parliament, the Commission is taking action
to increase the security of payment
fraud and counterfeiting of non-cash
transactions. To prevent
payments, the Commission adopted in February 2001 a three-year Fraud Prevention Action Plan (2) based

13.3.2004

EN

Official Journal of the European Union

C 65 E/33

on a partnership among all stakeholders. It provides for five main areas and 11 main actions that the
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.

Discussions on identity theft and 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.

After 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 Commission also proposed a Council Framework Decision combating fraud and counterfeiting of non-
cash means of payment, that has been adopted on 28 May 2001 (3). This text aims at ensuring that fraud
including credit cards and other cards issued by
and counterfeiting of non-cash means of payment,
financial institutions, are criminal offences in all Member States, punished by effective, proportionate and
dissuasive sanctions. Member States shall bring into force the measures necessary to comply with this
Framework Decision by 2 June 2003.

(1) www.cifas.org.uk
(2) COM(2001) 254 final.
(3) OJ L 149, 2.6.2001.

(2004/C 65 E/032)

WRITTEN QUESTION E-0516/03

by Miet Smet (PPE-DE) to the Council

(24 February 2003)

Subject: Women’s rights in Nigeria

Cooperation between the EU and Nigeria takes place on the basis of ACP-EU partnership. In the Cotonou
Agreement, which outlines the general framework for ACP-EU relations for the next 20 years, respect for
human rights and the equality of women and men is stressed repeatedly by both parties.

In spite of the fact that Nigeria subscribes to these principles, the rights of women in Nigeria are not
always respected. According to AFP, there are instances of women being stoned to death in some
provinces of Nigeria. These stonings are decreed by Islamic courts which apply the Sharia. Reuters also
mentions the fact that Nigeria is one of the countries where female circumcision still frequently occurs,
particularly among the Muslim population in the North.

Has the EU yet reacted to these grave infringements of women’s rights? If not, does it intend to do so?

Is there any provision for a mechanism to systematically monitor and enforce respect for women’s rights
in Nigeria? Is there provision for the possibility of suspending cooperation between Nigeria and the EU if
women’s rights, and human rights in general, are continually violated in Nigeria? If not, will the EU make
provision in future for such possibilities?

If there is provision for the monitoring and enforcement of respect for human rights and for the possible
suspension of cooperation between Nigeria and the EU, does this apply to all the countries which have
signed the Cotonou Agreement?