Nearly 1 In 3 Consumers Victimized By Card Fraud

Data demonstrates the need for financial institutions to implement and actively maintain effective fraud prevention solutions.

July 14, 2016

NAPLES, Fla. – Thirty percent of consumers globally have experienced card fraud in the past five years, according to recent data from ACI Worldwide and Aite Group.

The global fraud study of more than 6,000 consumers across 20 countries revealed that, compared to ACI’s 2014 benchmark study, card fraud rates—unauthorized activity on three types of payment cards (debit, credit and prepaid)—is on the rise worldwide.

Mexico leads as the top country experiencing the most card fraud at 56%, followed by Brazil at 49% and the U.S. at 47%. In 2014, the U.A.E, China, India and the U.S. topped the list.

The U.S. is the only country to remain within the top three both years, due in part to being a laggard in the roll-out of EMV chip cards, with skimming and data breaches continuing to be security challenges. European countries experience less card fraud than countries in the Americas, due to earlier adoption of EMV (chip and PIN) and other security advancements.

“Card fraud rates are on the rise in the majority of countries included in the survey,” said Ben Knieff, senior research analyst, Aite Group. “The data shows that consumer education and customer service remain a challenge for financial institutions globally, as risky behavior has a direct correlation to experiencing fraud.” 

With 2,260 confirmed data breaches in 2015, security remains top-of-mind within the financial services industry and among consumers. Despite the adoption of fraud analytics solutions by financial institutions and merchants—along with EMV in most countries, including in the U.S.—card fraud rates are on the rise in many parts of the world.

“It’s no surprise that there is a direct correlation between fraud and lower consumer trust and card loyalty,” said Andreas Suma, vice president and global lead, fraud and data, ACI Worldwide. “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.”