Report: U.S. Accounts for 21% of Card Volume, 48% of Card Fraud
Aug. 10, 2015
While the value of global card transactions rose 14.7 percent last year to $28.8 trillion, total fraud on those cards in 2014—including counterfeit, CNP and others—increased by 19 percent, the Nilson Report said last week. Fraud losses worldwide rose from 5.45 cents per $100 in 2013 to 5.65 cents per $100 last year. In the U.S., the report found the situation to be even worse. While the U.S. accounted for an impressive 21.4 percent of the total value of card purchases in 2014, it generated nearly half (48.2 percent) of all fraud losses.
The U.S. posted fraud losses of 12.75 cents for every $100 spent last year. The Nilson Report’s David Robertson said in an interview that, while many factors contributed to the difference between U.S. losses and those experienced by the rest of the world, “nothing mattered more than the lack of an EMV-compliant infrastructure.”
The U.S is on the road to EMV implementation and expects the reduction in counterfeit fraud to be significant. And, while that reduction may bring total U.S. fraud losses more in line with the rest of the world, the e- and m-commerce community continues to brace for a surge in card-not-present fraud that virtually every other market that converted to the EMV standard endured.