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  • Of all cardholders—debit, credit, and prepaid—33% have experienced card fraud in the past five years, a significant (and rising) number. This number was 30% in 2014, highlighting a slight uptick in fraud.
  • After experiencing fraud, 41% of consumers exhibit “back of the wallet” behavior and use the replacement card less than they used their previous card. Although this number is steady from 2014, and in line with global averages, this is still a high number and represents potential lost revenue for financial institutions.
  • Consumers dissatisfied with how they’re treated by their financial institution after experiencing fraud sometimes change providers, resulting in an attrition rate of 16%. This highlights the importance of after-care following a fraud experience.
  • 16% of South African consumers lack confidence that their financial institution can protect them against fraud. This has decreased slightly from 15% in 2014.
  • 54% of South African consumers exhibit at least one risky behavior, which puts them at higher risk of financial fraud. Consumer education about risky behaviors and combating/reducing reduce fraud rates is sorely needed – how to help consumers help themselves.
South Africa Global
Experienced fraud in the last five years 33% 30%
Consumers who use their replacement card less 41% 40%
Consumers who left their FI after a fraud event 16% 20%
Consumers who lack confidence in the FI to protect them against fraud 16% 14%
Consumers who engage in risky behavior 54% 54%

The data tells us that fraud continues to be a problem in South Africa and in many other countries, potentially putting a damper on consumer confidence in merchants and eCommerce sites. And much like their global counterparts, South African consumers still engage in risky behavior.  There are early indications of a growing fraud problem when compared with 2014, and if this continues, there will be significant impacts on the marketplace with financial institutions seeing a loss of revenue and an increase in customer churn. 

Director Marketing, Growth Markets

Paul McMeekin is a big believer in the power of payments and how they can change the world. He leads demand generation and customer acquisition efforts for the global bank segment. Previous roles at ACI include product marketing, analyst relations, and product operations. Outside of payments, Paul is an adjunct professor at the University of Nebraska at Omaha, where he graduated with an MBA. He currently lives in the Silicon Prairie. Paul is passionate about payments with a strong interest in the human aspect of payments, blockchain technologies, consumer experience and B2B marketing., He has been quoted in numerous publications including the Omaha World Herald, American Banker and Bank Systems & Technology. Paul has spoken across the world at numerous events including Payments, PayThink, Seamless Payments in South Africa and Dubai. For somebody lacking in the key skills of photography, his work has been published!