Credit Card Fraud Impacts Consumer Confidence Worldwide
IN 2013, there were 1,367 confirmed data breaches impacting consumers’ financial information.
In 2013, there were 1,367 confirmed data breaches impacting consumers’ financial information. Fraud concerns are overwhelming consumers across the world, and influencing a loss of confidence in both retailers and financial institutions’ ability to safeguard their data.
According to an ACI Worldwide Impact Report – Global Consumers: Losing Confidence in the Battle Against Fraud– 27 percent of cardholders (debit, credit and prepaid) had experienced card fraud in the past five years. After experiencing fraud, however, 63 percent of consumers use their card less, at least in some situations, than they had previously. In 2014, 14 percent of debit and credit card holders cite having experienced multiple
cases of fraud during the past five years.
Of cardholders who received replacement cards as a result of a data breach or fraudulent activity, 43 percent used the new card less than the original.
Consumers who are dissatisfied with how they are treated by their financial institution following fraud sometimes change providers, resulting in a global attrition rate of 23 percent. Eighteen percent of global consumers lack confidence that their financial institution can protect them from fraud.
The study, conducted by Aite Group in 20 countries, found that cardholders experience fraud at very different rates around the globe. The United Arab Emirates (UAE) has the highest rate of fraud overall at 44 percent, followed by China at 42 percent, and India and the United States at 41 percent each.