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Card Fraud Continues to Escalate, Now Topping the List of Consumer Fears

According to a recent study, debit and credit card fraud now tops the list of fears weighing on the minds of most Americans.

Sixty-eight percent of people surveyed say they find the prospect of fraudsters gaining control of their credit and debit cards to be their number one fear, dwarfing other anxieties such as terrorism, health epidemics, computer viruses and personal safety. Additionally, 66 percent of respondents said they were extremely or very concerned about becoming victims of identity fraud.¹

The survey, which is conducted annually by Unisys to gauge consumer concerns, is something of a call to arms for card issuers. It illustrates the concern that people associate with card fraud. Only 58 percent of those surveyed said they were worried about terrorism; only 41 percent said they harbor serious concerns about health epidemics.

Recent fraud loss statistics indicate that consumer fears are not misplaced. Despite signs of improvements in the economy, losses due to card fraud continue to climb. A 2010 Nilson Report says fraud losses for debit, credit and prepaid cards cost the financial industry $6.89 billion in 2009 – up seven percent over the previous year. And there is no sign of this upward trend changing. Nilson estimates that industry losses due to fraud could reach $10 billion by 2015.²

The number of identity fraud victims also continues to escalate. Javelin Strategy & Research reports there were more than 11 million victims of ID fraud last year. Not only does that figure represent a 12 percent jump from 2008, it’s also the highest number of ID theft victims recorded since Javelin started tracking those numbers in 2003.

With card fraud continuing to climb — and with anxiety about card fraud rising amongst card holders — it is more important than ever that card issuers use all available resources to keep card fraudsters at bay.

Early Warning collaborates with leading card issuers to develop solutions designed to help minimize their exposure to fraudsters.