Report: Consumers Use Replacement Cards Less after Fraud
July 14, 2016
Forty percent of consumers whose card is used to perpetrate fraud use the replacement card less, according to a new report. As EMV implementation in the U.S. accelerates a shift from in-store counterfeit fraud to card-not-present fraud , the report highlights the importance to issuers of effectively preventing fraud in all its forms. The ACI Worldwide Global Consumer Fraud Survey , commissioned by Naples, Fla.-based processor ACI Worldwide and prepared by Aite Group, found 30 percent of all cardholders have experienced fraud on their cards in the past five years. Seventeen percent said their card information has been used fraudulently multiple times during that time, up from 13 percent two years ago.
“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 of fraud and data for ACI Worldwide. “It’s no surprise that there is a direct correlation between fraud and lower consumer trust and card loyalty, including a primary contributor toward ‘back of wallet’ behavior. 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.”
One of the ways issuers can do that, Suma told CardNotPresent.com, is to partner with merchants and look at fraud from all perspectives.
“More of the savvy, sophisticated fraud operations are now trying to look at fraud holistically, where we can pool all the data and use more advanced analytics as a result,” he said. “How can we leverage card-not-present fraud analytics that then feed into a defensive layer at holistic levels?”