Global card fraud on the rise - ACI

Global card fraud on the rise - ACI

Nearly a third of people have been victims of card fraud in the last five years, up from a fifth just 18 months ago, according to figures covering eight countries for a survey commissioned by ACI Worldwide.

Research Now quizzed 4200 people in 14 countries for the vendor. In the eight countries also covered in a survey in mid-2009, there was a 60% jump to 29% of respondents.

In the UK, the percentage is even higher, at 33%, up from 27% only 18 months ago, which means an estimated 14.6 million UK consumers have been the victims of card fraud in the last five years.

Across all 14 countries, 41% would change or consider swapping their financial institution as a result of being a victim of card fraud or knowing someone who was. However, a further 45% say it would depend on the quality of service they received, highlighting the importance of customer service and response when fraud does happen.

In the UK, 37% of consumers would change or consider swapping financial institutions following an incidence of card fraud, down from 41% in 2009. Yet only 14% of Brits are unhappy with the treatment they receive from banks, just behind the US on 12% and Australia 10%, and far ahead of India, on 41% and Dubai, 38%.

In the UK, the speed at which money is refunded following fraud is the main reason for customer satisfaction (40%) closely followed by the ability of financial institutions to identify the fraud before account holders (34%).

This is a picture reflected across the globe although remarkably American consumers say that the ability for their bank to identify the fraud before them (40%) is more important than actually getting the money back quickly (32%).

Despite the prevalence of card fraud, 81% of people have confidence in their financial institution to protect them. But, over half of people do want their bank to contact them on their mobile, either with a call or by SMS, if they notice suspicious activity on their card. In the UK, that figure drops to just 39%.

David Divitt, senior fraud consultant, ACI Worldwide, says: "It is clear that financial institutions and processors are working tirelessly to combat card fraud and protect their customers - and this is paying dividends in terms of customer satisfaction. However fraud is constantly changing and, looking forward, the industry will need to increase focus on identifying identity theft and assisting victims to maintain this improvement in customer experience."

Comments: (1)

Jan-Olof Brunila
Jan-Olof Brunila - Swedbank - Stockholm 11 February, 2011, 10:20Be the first to give this comment the thumbs up 0 likes

Skimming and e-copmmerce fraud combat must be the top priority for the banks and card schemes since card payments are the only cash payment replacement today. Trust of the payment service regarding quality is far more important than the calculation of potential business case for curtailing fraud. If I need to have an SMS message to confirm all my card payments in order to feel secure the trust has already been lost.

 

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