Observatory of the security of means of payment

The Observatory for Payment Security is a French body for the exchange of information and consultation between the parties (consumers, merchants, issuers and public authorities) concerned by the security of card payment systems and others. means of payment.

History

Established by the law of 15 November 2001 on daily security , the observatory for the security of payment cards (first name of this body) is actually installed by the first order of appointment of its members, dated1 .

The law Sapin 2 of 2016 renames the observatory and extends its skills to all means of payment.

Missions

The missions of this observatory are defined by Article L141-4 of the Monetary and Financial Code 2 :

  • monitor the security measures taken by issuers, merchants and businesses;
  • establish fraud statistics;
  • ensure the technological watch in the field of means of payment with the aim of proposing means to fight against the attacks on the security of the means of payment.

Definition of the scope of competence

When it was created, the scope of this observatory covered cards issued by a credit institution or similar institution whose functions are the withdrawal or the transfer of funds. It did not cover single-issue cards. Among these cards, there are so-called privative cards (such as those reserved for payments in a large chain) and interbank cards (accepted by a large number of establishments in France and worldwide).

This definition was governed by Article L132-1 of the Monetary and Financial Code, before its deletion in 2009 3 by the incorporation into French law of the European Directive on payment services . Since then, question 4 , 5 has been raised to extend the powers of the observatory to a larger field of payment instruments whose security must be ensured: in its presentation of the work of the observatory on 5 July 2016 6 , François Villeroy de Galhau confirmed this extension to come in the law Sapin 2 . An amendment filed 7 by Dominique Potier , draftsman on behalf of theThe Committee on Economic Affairs of the National Assembly replaces the word “cards” by “means” in Article L141-4 8 of the Monetary and Financial Code and extends the jurisdiction to all non – cash means of payment 9 .

Presidency and Coordination

In accordance with Article R142-23 of the Monetary and Financial Code 10 , the president of the observatory is appointed from among its members by the Minister of the Economy. Its mandate is three years, renewable. Traditionally, it is the Governor of the Banque de France who is appointed to assume this presidency, ie successively:

Date of the order of appointment President
Jean-Claude Trichet
Christian Noyer
François Villeroy de Galhau

The secretariat of the observatory is staffed by Banque de France staff, who are more generally in charge of its operation.

Composition

In accordance with Article R142-22 of the Monetary and Financial Code 11 , this observatory has 34 members:

  • A deputy and a senator;
  • Eight representatives of the administrations concerned:
    • A representative of the General Secretariat for Defense and National Security;
    • Two representatives of the Minister of the Economy;
    • A representative of the Keeper of the Seals, Minister of Justice;
    • Two representatives of the Minister of the Interior (since the National Gendarmerie joined the Ministry of the Interior);
    • A representative of the minister in charge of consumption;
    • A representative of the Minister of Industry;
  • The Governor of the Banque de France or his representative;
  • The Secretary General of the Prudential Supervisory and Resolution Authority or his representative;
  • A representative of the National Commission for Informatics and Liberties;
  • Fourteen representatives of issuers of payment instruments and payment system operators;
  • Five representatives of the Consumer College of the National Consumption Council;
  • Eight representatives of professional organizations of merchants and companies in the fields of retail, mass distribution, distance selling and e-commerce, among others;
  • Two personalities chosen because of their competence.

Members of the Observatory

Date of the order of appointment Deputy Senator (trice)
Jean-Pierre Brard Paul Loridant
Jean-Pierre Brard Nicole Bricq
Jean-Pierre Brard Michèle André
Philippe Goujon Michèle André

Qualified personalities

Date of the order of appointment Qualified personalities
Jean-Marc Honoré
Jacques Stern
Charlotte-Marie Pitrat ( CNIL representative )
Jacques Stern
Philip Cambriel
Sophie Vulliet-Tavernier (representing the CNIL)
David Naccache
Philippe Cambriel
Sophie Nerbonne (representing the CNIL)
David Naccache
Sophie Nerbonne (CNIL representative)
Éric Brier
Éric Brier
David Naccache
Stéphane Grégoire (CNIL representative)
Claude France
David Naccache
(from 2017, the CNIL is an ex-officio member)

Works

The work of this observatory is organized in plenary meetings (three in a year), permanent working groups (statistics of fraud and technology watch) and ad hoc working groups . An annual report has been produced each year since 2003.

Annual reports

Exercise Publication date Title of the report
2003 Annual Report, Fiscal Year 2003 ( read online  [ archive ] )
2004 Exercise 2004, Annual Report of the Observatory for Payment Card Security ( read online  [ archive ] )
2005 2005 Annual Report of the Payment Card Security Observatory ( read online  [ archive ] )
2006 Annual Report 2006 of the Observatory for Payment Card Security ( read online  [ archive ] )
2007 Annual Report 2007 of the Observatory for Payment Card Security ( read online  [ archive ] )
2008 Payment Card Observatory Annual Report 2008 ( read online  [ archive ] )
2009 2009 Annual Report of the Observatory for Payment Card Security ( read online  [ archive ] )
2010 Annual Report 2010 of the Observatory for Payment Card Security ( read online  [ archive ] )
2011 Payment Card Observatory Annual Report 2011 ( read online  [ archive ] )
2012 Annual Report 2012 of the Observatory for Payment Card Security ( read online  [ archive ] )
2013 2013 Annual Report of the Observatory for Payment Card Security ( read online  [ archive ] )
2014 Annual Report 2014 of the Observatory for Payment Card Security ( read online  [ archive ] )
2015 2015 Annual Report of the Observatory for Payment Card Security ( read online  [ archive ] )
2016 2016 Annual Report of the Observatory for the security of means of payment ( read online  [ archive ] )

Evolution of fraud rates

The overall fraud rates for transactions processed by French systems, as well as the information used to put them into perspective, are taken from the Observatory’s annual reports and presented in the table below:

Exercise Volume of transactions
observed in France
(in billions of euros)
Amount of fraud
on transactions processed
in French systems
(in millions of euros)
Fraud rate
on transactions processed
in French systems
Transaction
fraudulent
average
Number of cards
put in opposition
(at least one
fraudulent transaction)
Cards in circulation
(in millions)
2002 245.2 0.082%
2003 273.6 0.086% ( +0.004 pts )
2004 345.1 241.6 0.070% ( -0.016 pts ) $ 105
2005 368.5 (+ 7%) 235.9 (-2%) 0.064% ( -0.006pts )  111 (+ 6%) 400,000 78.4
2006 395.1 (+ 7%) 252.6 (+ 7%) 0.064% ( = )  117 (+ 5%) 400,000 78.6
2007 430.7 (+ 9%) 268.5 (+ 6%) 0.062% ( -0.002 pts )  130 (+ 11%) 460,000 81.5
2008 464.1 (+ 8%) 320.2 (+ 19%) 0.069% ( +0.007 pts )  131 (+ 1%) 530,000 84.7
2009 477.3 (+ 3%) 342.4 (+ 7%) 0.072% ( +0.003 pts )  136 (+ 4%) 605,000 90.6
2010 498.2 (+ 4%) 368.9 (+ 8%) 0.074% ( +0.002 pts )  122 (-10%) 640,000 88.6
2011 533.7 (+ 7%) 413.2 (+ 12%) 0.077% ( +0.003 pts )  130 (+ 7%) 745,000 85.8
2012 560.5 (+ 5%) 450.7 (+ 9%) 0.080% ( +0.003 pts ) 125  (-3%) 767,000 85.8
2013 586.5 (+ 5%) 469.9 (+ 4%) 0.080% ( = )  116 (-7%) 861,000 85.5
2014 624.9 (+ 7%) 500.6 (+ 7%) 0.080% ( = )  112 (-3%) 905,600 85.6
2015 636.0 (+ 2%) 522.7 (+ 4%) 0.082% ( +0.002 pts )  113 (+ 1%) 868,400 84.2
2016 from 2016, 
all means of payment
27 161 (+ 3%)
All means:
798,0
Cards:
0.077% ( -0.005pts )
All means:
159 
1,138,000 84.3

References

  1. ↑ Order of 23 January 2003 appointing the members of the Observatory for Payment Card Security  [ archive ]
  2. ↑ Monetary and Financial Code – Article L141-4 ( read online  [ archive ] )
  3. ↑ Article 1 of Order No. 2009-866 of 15 July 2009 on the conditions governing the provision of payment services and establishing payment institutions  [ archive ]
  4. ↑ Eric Freyssinet ( pref. Jean-Pierre Dardayrol) Cybercrime moving (Test), Hermès Science Lavoisier , al.  “Management & IT”, ( ISBN  978-2746232884 , online presentation  [ archive ] ) , chap.  11 (“Sharing as a weapon”), p.  187 “It therefore seems absolutely necessary to change the Observatory’s scope of responsibility and extend it to all payment instruments, including cards, electronic purses and the various electronic payment systems. Eventually, he could also be interested in the security of the online bank and the transfer operations that are ordered there. “
  5. ↑ Marc Robert, Protect Internet, Report on Cybercrime , ( read online  [ archive ] ) , “Recommendation No. 5 on extending the remit of the Observatory for Payment Card Security. Extend the Observatory’s competence to all payment instruments other than checks, in order to better apprehend them, to identify the risks in terms of cybercrime and to propose responses that will better protect the consumer and the public. user. “
  6. ↑ Presentation of the 2015 annual report  [ archive ]
  7. ↑ Amendment No. 1205 at first reading in the National Assembly on the draft law on transparency, the fight against corruption and the modernization of economic life  [ archive ]
  8. ↑ Article L141-4 of the Monetary and Financial Code  [ archive ]
  9. ↑ Article L311-3 of the Monetary and Financial Code  [ archive ] defines means of payment as “all instruments that allow any person to transfer funds, regardless of the medium or the technical process used . “
  10. ↑ Article R142-23 of the Monetary and Financial Code  [ archive ]
  11. ↑ Article R142-22 of the Monetary and Financial Code  [ archive ]

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