Global Fraud Report Finds One-in-four Consumers Victims of Card Fraud
A global study of more than 5,200 consumers across 17 countries conducted by ACI Worldwide and Aite Group, revealed that one-in-four respondents has been victimised by credit, debit or pre-paid card fraud during the past five years, with more than 20% of respondents reporting that they will stop using, or switch from, the card impacted by fraudulent activity. The report also found that residents of Mexico and the US reported the highest percentage of direct experience with card fraud, at 44% and 42% respectively, while residents of the Netherlands and Sweden tied for the lowest levels of fraud at 12%.
“The results of this survey show that card fraud continues to be one of the greatest threats and concerns for consumers, financial institutions and retailers,” said Mike Braatz, senior vice president (SVP), payments fraud, ACI Worldwide. “While there have been significant advances in fraud prevention technology, it is clear that more needs to be done to educate consumers about fraud and engage them as allies when it occurs. These results should serve as a call-to-action for financial institutions and retailers to remain constantly vigilant and earn the trust of customers by working with them to combat fraud.”
The 2012 Fraud Survey also found that:
Financial institutions risk losing customers due to fraud
Consumers fear identity theft yet continue risky behaviour
Consumers want to partner with banks for fraud prevention
“The 2012 Fraud survey paints a compelling picture of the global nature and threat of fraud,” said Shirley Inscoe, senior analyst, Aite Group. “Financial institutions, issuers and retailers need to enlist customers in the fight against fraud, educate them on prevention best practices, and reassure them of policies should fraud occur. Maintaining customer satisfaction, loyalty and preserving wallet share can be achieved by communicating with and enlisting the customer in the fight against fraud.