Global Fraud Shakes Consumer Confidence; U.S. Ranks Third in Overall Fraud (July 3, 2014)
One in four consumers worldwide has been a victim of card fraud in the last five years, and consumer confidence is wavering, according to a new global fraud study from ACI Worldwide and Aite Group. Issuers also face lower card use or attrition among cardholders who experience fraud.
The study, which examined unauthorized activity on debit, credit and prepaid cards among more than 6,100 consumers across 20 countries, revealed that nearly 25 percent of consumers changed financial institutions after experiencing card fraud. Sixty-three percent of respondents who experienced fraud are more likely to use their cards less, and 55 percent are “very concerned” about reclaiming financial identity if they fall victim to identity theft.
The United Arab Emirates had the highest rate of fraud overall with 44 percent of respondents in the country reporting having been victims of fraud in the past five years, followed by China at 42 percent. India and the United States each had fraud rates of 41 percent.
The report authors recommend financial institutions focus on educating consumers to protect themselves against fraud by avoiding risky behavior, such as shopping online on a public computer or not securing their smartphones or tablets when not in use.
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