Credit unions and other card issuers are losing a whopping $10.9 billion a year to fraud and criminals appear to be attacking from all angles, a new LexisNexis Risk Solutions study said.
The study of 100 risk and fraud decision-makers and influencers working at U.S. card issuers reported 71% of card fraud now comes from credit cards – three times the fraud from debit cards, which accounted for 25% of the total. Prepaid cards contributed only half a billion in fraud losses, the study said.
"EMV chip technology represents the strongest anti-fraud protection at the POS terminal," LexisNexis Risk Solutions Senior Director of Identity Management Kim Little Sutherland said. "However, as this new model continues to roll out over the next 12 months in the U.S., issuers expect certain fraud types to increase. Notably, with the window closing on easily replicable mag stripe cards, we forecast a shift and bump in identity schemes – characterized by the use of synthetic identities and the misuse of true identities."
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
