News

Survey: Bankers say nearly half of customer accounts have been compromised

April 3, 2014

A recent survey of bank executives by ACI Worldwide offers an indication of the scale of card fraud in the U.S. — and the steps that FIs are taking in response.

The survey conducted in March 2014 at BAI Payments Connect found that:

• 44 percent of customer accounts have been compromised;
• 42 percent are more aggressively looking at EMV plans;  
• 50 percent are currently investing in fraud detection technology; and
• 42 percent of customers have responded favorably to banks’ efforts to respond to breach events.

The impact of data breaches

More than 15 percent of respondents indicated that recent breaches put increased pressure on fraud operations. And another 12 percent indicated that they suffered a negative impact on their brand. Somewhat surprisingly, nearly one-quarter (22 percent) said they felt no direct impact from breaches. 

 More than 75 percent of respondents said they are looking at additional resources to combat fraud in their organizations. Of those, 50 percent said they are looking to invest in fraud detection technology, more than 15 percent are investing in more training for their fraud management teams, and 10 percent say that they are beefing up staff with new personnel.

“Managing fraud in the wake of a data breach involves having the right tools to detect fraud as early as possible and using customer communication programs that proactively address account holders’ concerns,” said Mike Braatz, SVP and Product Line Manager for payments risk management at ACI. “Without proper proactive and reactive fraud protocols, banks and issuers risk losing customers and trust in their brands, even when the breach occurred through no fault of their own.”

The survey of fifty financial industry professionals was conducted by ACI Worldwide at BAI Payments Connect in Las Vegas on March 10-11, 2013, and published on March 26. The survey includes responses from executive/management decision makers, fraud/risk management, and back office operations at financial institutions.