Credit Card Fraud
Merchants in the United States are loosing approximately $190 billion a year to credit card fraud -- according to a Lexis Nexis study, "The True Cost Of Fraud."
Banks lose $11 billion annually and consumers loses are about $4.8 billion annually.
“Banks and mobile-payment providers are scrambling to build – or buy – better defenses,” as Bloomberg BusinessWeek’s Olga Kharif wrote in October 2012.
Direct Identity fraud causes a total of $48 billion in losses each year, shared among retailers, consumers and financial institutions.
23% OF CUSTOMERS CHANGE BANKS AFTER CARD FRAUD, SAYS REPORT
The United Arab Emirates (UAE), including Dubai and Abu Dhabi, heads the global league table for the percentage of consumers reporting that they have been victims of fraud involving credit, debit or prepaid cards. This emerges from a fraud study of more than 6,100 consumers across 20 countries conducted by international payment systems provider ACI Worldwide and analysts Aite Group. Indeed, 44% of UAE consumers said they had been attacked by card fraudsters within the past five years. Close behind were China and India, each at 42%, and the USA (41%). Britain (28%) topped the European table with Sweden (10%) enjoying the lowest rate among the countries studied. Alarmingly for banks and other payment service providers, 23% of consumers changed financial institutions after experiencing fraud. “Consumers are increasingly concerned about fraud, and are losing confidence on a variety of levels,” said Mike Braatz, senior vice president, payments risk management solutions, ACI Worldwide. “This has immediate and long-term implications on customer loyalty, revenue and fee income.”