Global card fraud on the rise – study

Culled from The Paypers
Global card fraud is on the rise, with 27 percent of people declaring they have been affected by credit, debit or pre-paid card fraud during the last five years, a recent survey indicates.

 

According to research conducted by ACI Worldwide, a US online payment services provider and Aite Group, more than 20 percent of respondents have stated they will stop using, or switch from, the card impacted by fraudulent activity.

 

Results also point out that residents of Mexico and the US have reported the highest percentage of direct experience with card fraud, at 44 and 42 percent respectively, while residents of The Netherlands and Sweden have tied for the lowest levels of fraud at 12 percent.

 

The same source unveils that of cardholders who received replacement cards as a result of a data breach or fraudulent activity in the past year, 46 percent have used the new card less than the initial one. Moreover, after experiencing fraud, more than 50 percent of cardholders have turned to cash or an alternate form of payment instead of using their credit or debit card.

With regard to consumer behaviour, the survey reveals that many consumers continue to exhibit risky behaviors that put them at higher risk of financial fraud, including keeping written records of PIN numbers, throwing un-shredded documents with sensitive information into trash bins and using public computers or computers without security software for e-banking services and to shop online.

 

The study is based on sample of 5,223 consumers, with almost 300 consumers, divided equally between men and women in each of the 17 countries, including Brazil, Canada, Mexico, the US, France, Germany, Italy, the Netherlands, South Africa, Sweden, the United Arab Emirates, the UK, Australia, China, India, Indonesia and Singapore.

Culled from The Paypers