Nearly 30% of consumers across the world have been a victim of card fraud in the past five years, according to new global benchmark data from ACI Worldwide and Aite Group.
The global fraud study, in which over 6,000 consumers from across 20 countries participated, revealed that compared to ACI’s 2014 benchmark study, card fraud rates – unauthorised activity on three types of payment cards, including debit, credit and prepaid – are on the rise around the globe.
The study highlighted that 14 out of the 17 countries surveyed in both years reported an increase in card fraud between 2014 and 2016.
It further revealed that risky behaviours, such as leaving a smartphone unlocked, have a direct correlation to fraud. The report pointed out that the overall risk for fraud is growing due to the global increase in smartphone and tablet usage.
Mexico recorded the highest rate of fraud, followed by Brazil and the US, according to the report. The US is the only country to remain in the top three of the list for both years, due in part to being slow to roll out EMV-enabled chip cards and security challenges with skimming and data breaches.
The survey also found that around 54% of consumers globally exhibit at least one risky behaviour such as keeping a PIN with the card, which puts them at higher risk of financial fraud, compared to 50% in 2014.
Nearly 17% of the debit and credit card holders who participated in the study said they experienced fraud multiple times during the past five years compared to 13% in 2014.
ACI Worldwide vice president and global lead of fraud and data Andreas Suma said: “This study confirms that card fraud remains an issue of deep concern for consumers around the globe.
“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’ behaviour.
“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.”