Card fraud increases 60 per cent in 18 months
ACI’s 2010 Global Card Fraud Survey has been making a splash in the media over the last few weeks. According to our research, approaching a third (29 per cent) of consumers across eight major economies have been victims of card fraud in the past five years. This is up from less than a fifth (18 per cent) in summer 2009.
However, the good news for financial institutions is that 79 per cent of these card fraud victims were satisfied with the response from their financial institution, up from 75 per cent in 2009.
The UK has a higher instance of card fraud than most other countries surveyed, with a third (33 per cent) of consumers falling victim in the past five years, up from just 27 per cent only 18 months ago, which means an estimated 14.6 million UK consumers have been the victims of card fraud in the last five years. However, these results vary significantly by country – for example nearly half (43 per cent) of people in China have been victims of card fraud, compared to only 11 per cent in the Netherlands.
The research also showed that 50 per cent of consumers worry about card fraud over other financial threats. Yet the survey of 4,200 consumers across 14 countries also showed that too many people fail to take basic precautions for protecting themselves from financial crime. In the UK for instance, nearly one in ten (nine per cent) consumers break the cardinal rule – never carry your PIN number with your card. On average, this figure rises to 12 per cent globally.
There are clearly a lot of stats to take in here. But in essence, what they are telling us is that fraud is a growing issue – and as an industry tackling it remains a major priority. Reassuringly, financial institutions and processors are working tirelessly to combat the crime and protect their customers – and this is paying dividends in terms of customer satisfaction.
But there is also a clear need for further customer education. Banks need to continue to inform consumers about how they can protect themselves against fraud. For example, by driving home the message that you should never carry your PIN with your card.
Interestingly, the UK Cards Association has this week announced that UK card fraud is at a 10-year low. At first this may look at odds to our research, but that may not be the case. Their stats show that the value of cash being stolen is getting lower. This means whereas you might have lost £100 previously, you now only lose £50. But the incidence of fraud is obviously on the up – even if less is being taken each time.
So, as we all work together as an industry to combat this crime, the key thing to remember is that fraud is constantly changing and, looking forward, the industry will need to increase focus on customer education, remedies to safe guard customer identities, verification and authenticating customer payments to improve the overall customer experience.
Risk Business Solutions Consultant
Related Blog Posts
How Italian Banks and Processors Can Capitalize on Digital Transformation
The European payments landscape is in an era of significant change thanks to PSD2 and other macro factors, but there is more than one way to deliver real-time and open payments to meet PSD2 requirements and its technical standards. Banks and processors must manage this alongside their own set of domestic challenges and opportunities.
Overcoming Cyber Threats to Payments Security
Recently, Gene Scriven, chief information security officer at ACI, spoke at NACHA Payments 2019 on the ever-changing landscape of cybersecurity. Here are a few highlights from his session, including the impacts of cybersecurity breaches, today’s emerging threats and the new strategies to keep your organization safe.
Removing Gender Bias and Enabling Women to Succeed in Leadership Roles
The recent UK Women in Payments (WIP) Symposium 2019 took place in London, recognizing unique leaders who help uplift women in the payments industry. Among those recognized was ACI’s Melissa McKendry, vice president, Retail Banking Implementation Services, who was honored by WIP as the 2019 Advocate for Women.
Regulating for Real-Time: The Role of Government in Payments Modernization
Dr. Leo Lipis and Craig Ramsey, Head of Real-Time Payments for ACI Worldwide, continue their discussion on real-time payments and the findings of the new white paper, Get More from Real-Time.
Payments and Fraud: The Paradox Twins
Digital commerce through web and mobile is where merchants predominantly experience shopper growth today. This has become a hugely important domain for their focus. It offers a means for international growth, new market penetration and a way to engage with shopper-hungry Millennials in their culture. Merchants frequently adopt a Digital-First, eCommerce-First or Mobile-First strategy to ensure full corporate buy-in to this strategy.
Open Payments Systems for Merchants: Don't Close Down Your Options
Remember “Open Systems”?
It was a big industry nom du jour in the 80s and 90s. Every IT system had to be open and therefore flexible and future-proof. Nobody can argue with the logic behind this; making systems easy to integrate with other systems, ensuring vendors could cooperate with one another; creating agility to improve time to market and drive down costs.
Issuing and Acquiring in a Real-Time and Open Payments Ecosystem – The Global Picture
Dr Leo Lipis and Craig Ramsey, Head of Real-Time Payments for ACI Worldwide, continue their discussion on real-time payments, stemming from the findings of the new white paper, Get More from Real-Time. See part one.
Why It’s Time for Women to Rise UP
As a senior software engineer at ACI Worldwide, Rawan Shawar helps to guide her team’s priorities and enhance processes at both the team and organizational level. Recently, Rawan was selected by the organizers of Money20/20 Asia to be part the Rise Up Class of 2019.
Can Digital Payments Be Kind?
There is no doubt that the era of less (or minimal) cash is truly upon us. According to the Access to Cash Review, cash could fall to just 10 percent of all payments in the UK within the next 15 years.
Other countries, such as Sweden, have already seen significant changes – cashless payments have grown so quickly that only 10 percent of the 20 SEB banks in Stockholm now hold cash. Beyond Europe, China is leading the way with USD$12.8 trillion in mobile payment transactions in 2018.