News

Card fraud strikes nearly 1 in 3 consumers worldwide

July 14, 2016

Thirty percent of consumers around the world have experienced card fraud within the past five years, 17 percent of them more than once, according to the 2016 Global Consumer Fraud Report from ACI Worldwide and Aite Group.

Polling of more than 6,000 consumers in 20 countries revealed that, compared with findings of the 2014 benchmark study by ACI, fraud rates (and repeat fraud rates) for debit, credit and prepaid cards are on the rise worldwide.

Respondents in 14 of 17 (82 percent) of the countries surveyed in both 2014 and 2016 reported an increase in card fraud.

Among the findings of the 2016 global study:

• Mexico leads in card fraud at 56 percent, followed by Brazil at 49 percent and the U.S. at 47 percent (the United Arab Emirates, China, and the United States and India [tie] topped the list in 2014);
• the U.S. is the only country to appear on the top three list in both years, due in part to its dawdling rollout of EMV chip cards;
• 54 percent of consumers (50 percent in 2014) engage in at least one behavior that puts them at risk for fraud (e.g., keeping a card and PIN in the same place);
• (unsurprisingly) European countries experience less card fraud than countries in the Americas, due to their earlier adoption of EMV and other security measures.

The study also found that while consumer perceptions about card security have improved somewhat, trust and loyalty still dlag:

• 40 percent of consumers who received replacement cards as a result of a data breach or fraud use the new card less than they used their original card;
• 14 percent of consumers lack confidence that their financial institution can protect them against fraud, an improvement from nearly 20 percent in 2014; and
• 1 in 5 consumers changed financial institutions due after experiencing fraud.

"This study confirms that card fraud remains an issue of deep concern for consumers around the globe," said Andreas Suma, vice president and global lead for fraud and data at 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."

To receive a complimentary copy of the two-part report, visit aciworldwide.com/fraud-survey.