Almost a Third of Consumers Victimized by Card Fraud

by Sarah Grotta 0

A report has been published which provides an estimate that 30% of all cardholders on a global basis have experienced some level of card fraud, with much of that concentrated in the U.S.

The 2016 Global Consumer Fraud Report from the Naples, Fla.-based ACI Worldwide and Boston-based Aite Group revealed that 30% of consumers globally experienced card fraud in the past five years, according to data gathered from more than 6,000 consumers across 20 countries.

This article in Credit Union Times characterizes the fraud activity as cardholders being victimized by card fraud, which is rather strong language. The industry needs to do a better job of cleaning up fraud messes, but most cardholders are only irritated or inconvenienced when their card is used fraudulently. Most times, cardholders are not experiencing monetary losses. This may be why consumers are aggressively demanding better fraud controls. This report provides information regarding just how blasé consumers can be to protect their payment credentials:

The report also found 54% of consumers globally exhibited at least one risky type of behavior, such as keeping a PIN with their card, which puts them at higher risk of financial fraud, compared to 50% in 2014. Consumers in Brazil exhibited the riskiest behaviors among countries in the Americas: 27% of consumers left their smartphones unlocked when not in use, compared with 29% in Spain and 36% in Thailand

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group

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