Top 7 Alarming Facts and Statistics on Card Fraud
Welcome to our 4-part blog series on Giving the Finger to Fraud. In this fourth and final post, David Orme, SVP of Sales and Marketing at IDEX Biometrics reveals 7 Alarming Facts and Statistics on Card Fraud. Our previous post in Giving the Finger to Fraud looked at why there is an increasing demand for biometric security.
How often do you think about payment security every time you make a transaction? How can you be completely sure that your card credentials are in safe hands? You might think that your payment cards are safe but it’s high time you start thinking otherwise. The following disconcerting statistics and facts are proof that you might be within the grasp of highly-competent hackers leveraging the darker side of technology. Let’s find out!
1. According to the Nilson report, global card losses are expected to exceed $35 billion by 2020.
2. Over 55% of fraud-related complaints listed a method of initial contact out of which 77% were contacted by phone, 8% by email, and 3% were contacted by mail.
3. 65% of the time, credit card fraud results in a direct or indirect financial loss for the user.
4. 46% of the world’s credit card fraud happens in the United States out of which 25.7% charges were made to an existing credit card, 21.4% were made using an existing checking or savings account, 15.9% of transactions were made using an existing debit account, 10.5% of transactions were made on an existing loan or line of credit, and 18.5% of transactions were made using financial accounts such as PayPal.
5. The three types of card fraud techniques in the UK are mostly committed at cash machines through card-trapping devices, by skimming, or by shoulder surfing.
6. 75% of businesses want advanced authentication and security measures that have little or no impact on the customer experience.
7. 50% of users find it difficult to get loans or credit because of identity theft.
It’s time we take a quantum leap in protecting our identity every time we make a transaction by enlisting help from advanced authentication measures such as biometric identification systems. Learn more about biometric technology here.
Sources: CreditCards.com, CreditDonkey, Experio, Safesmartliving
Our previous post in Giving the Finger to Fraud looked at why there is an increasing demand for biometric security.