Study: 1 in 4 Say They Have Been Victims of Credit Card Fraud
A global study of more than 5,200 consumers conducted by ACI Worldwide and Aite Group has found that one in four say they have been victimized by credit card or pre-paid card fraud during the past five years.
The study surveyed consumers in 17 countries. Reported fraud rates were highest in Mexico (44% said they were victims) and the United States (42%).
More than 20% of the victims said they would stop using, or switch from, the card that had been involved in fraud.
"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, a senior vice president at Naples, Fla.-based payments company ACI Worldwide, in a prepared statement.
"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,” Braatz said. “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."
Among the data points discovered in the study:
* “After experiencing fraud, more than 50% of cardholders used cash or an alternate form of payment instead of their credit or debit card.”
* “Consumers prefer immediate and direct communication from their banks when fraudulent activity is detected. The most preferred method of contact was found to be a call to the respondents’ mobile phone, followed closely by e-mail or text message. This illustrates a change from 2011 where contact via home phone was the second most preferred method.”