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Report: Almost a Third of Consumers Victimized by Card Fraud
Wednesday, July 20, 2016 6:40 AM

Despite the adoption of fraud analytics solutions by financial institutions and merchants, along with EMV being implemented in most countries including the U.S., card fraud rates are increasing in many parts of the world.

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

Compared to ACI’s 2014 benchmark study, card fraud rates and unauthorized activity on three types of payment cards (debit, credit and prepaid) is on the rise. With 2,260 confirmed data breaches in 2015 alone, security remains top-of-mind within the financial services industry and among consumers. Fourteen of the countries surveyed reported an increase in card fraud between 2014 and 2016.

“This study confirms that card fraud remains an issue of deep concern for consumers around the globe,” said Andreas Suma, vice president and global lead, fraud and data for ACI Worldwide. “It’s no surprise that there is a direct correlation between fraud and lower consumer trust and card loyalty, including a primary contributor toward back of wallet behavior. And as this data illustrates, it’s more critical than ever for financial institutions to implement and actively maintain effective fraud prevention solutions that address fraud, security and customer experience needs.”

The study suggested risky behaviors, such as leaving a smartphone unlocked when not in use, have a direct correlation to fraud, and the overall risk for fraud is rising due to the global increase in smartphone and tablet usage.