Total global card fraud in 2015 grew to $21.84 billion, nearly 21 percent higher than the year before, according to The Nilson Report. The U.S. accounted for 39 percent of global card fraud losses ($8.45 billion) despite generating only 23 percent of spending volume. The report predicts global losses to continue to rise through 2019, when they will reach $32.8 billion before moderating in 2020.
With total spending volume reaching more than $31 trillion worldwide, fraud accounted for nearly 7 cents per $100 spent in 2015, up from 6.21 cents per $100 in 2014. In the U.S., fraud reached almost 12 cents per $100 of volume. The report predicts fraud as a percent of volume to rise to 7.3 cents per every $100 spent in 2018 before falling back to 6.5 cents per $100 in 2020.
The Nilson Report noted the dichotomy between the types of losses experienced by issuers and those suffered by merchants and acquirers. Issuers accounted for 72 percent of fraud loss worldwide, mostly from counterfeit debit and credit cards used at the POS and ATMs. Merchants and acquirers accounted for 28 percent of the total, mainly from e-commerce.
“Fraud losses to merchants and their acquirers occurred overwhelmingly from CNP transactions, and the problem is aggressively worsening,” the Nilson Report analysis said. “Losses to CNP fraud exceeded $5.65 billion last year, with growth in nearly every country. In the U.S., CNP already accounts for more than 50 of total fraud losses.”