23 July 2017
visit www.avoka.com

As US card fraud rises, firms increase security spending

04 April 2014  |  5621 views  |  1 Woman shopping with credit card

US credit card fraud increased last year despite efforts by firms to beef up their security, according to an Association for Financial Professionals (AFP) survey.

The poll of 5644 AFP members - sponsored by JP Morgan - reveals that 60% were exposed to actual or attempted payments fraud last year, down from 68% in 2011. However, 70% did not take a financial hit from their brush with crooks.

Cheque fraud continues to be the most prevalent type of payment fraud, accounting or 82% of incidents last year. Card fraud is a distant second at 43% but this is a big jump from 29% in 2012.

With card fraud in the news following the recent high-profile Target data breach, 63% of respondents say that they have either adopted additional security measures or are planning to do so in the near future.

Firms are taking a range of approaches, including secure signature stamps, electronic signatures, payment data stored with third-party vendors and increased layers of security.

Yet just 22% think that this investment will have a significant impact on fraud prevention, with half thinking that it will do some good.

Jim Kaitz, CEO, AFP, says: "Criminals will try to stay a step ahead. But with potential liability increasing for merchants, companies are taking a hard look at where their own vulnerabilities lie. This is especially important for big companies with complex systems, which are frequent targets for fraud."

Comments: (1)

Alexander Peschkoff
Alexander Peschkoff - TEDIPAY - London | 04 April, 2014, 12:29

The need colonic irrigation, not extra security...

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Banks losing millions to new wave of ATM hacks - FFIEC

Banks losing millions to new wave of ATM hacks - FFIEC

03 April 2014  |  9685 views  |  4 comments | 8 tweets | 16 linkedin
Fraud losses on UK cards on the up

Fraud losses on UK cards on the up

14 March 2014  |  8409 views  |  0 comments | 18 tweets | 15 linkedin
Visa and MasterCard launch cross-industry effort to push US adoption of EMV

Visa and MasterCard launch cross-industry effort to push US adoption of EMV

07 March 2014  |  11316 views  |  4 comments | 20 tweets | 19 linkedin
Hacked Target hastens migration to chip cards

Hacked Target hastens migration to chip cards

05 February 2014  |  6621 views  |  0 comments | 4 tweets | 9 linkedin
European card fraud losses fall

European card fraud losses fall

17 July 2013  |  8863 views  |  0 comments | 6 tweets | 7 linkedin
US chip card debate heats up

US chip card debate heats up

26 April 2013  |  12363 views  |  0 comments | 13 tweets | 7 linkedin

Related company news

 

Related company information

JPMorgan Chase

Related blogs

Create a blog about this story (membership required)
visit www.worldpaymentsreport.comvisit vasco.com/news/PSD2-compliant-solutionsvisit www.ncr.com

Top topics

Most viewed Most shared
German fintech factory FinLeap raises EUR39 millionGerman fintech factory FinLeap raises EUR3...
13742 views comments | 19 tweets | 15 linkedin
Mastercard to buy AI outfit BrighterionMastercard to buy AI outfit Brighterion
9958 views comments | 14 tweets | 20 linkedin
Barclays rides payments-as-a-service wave with investment in Form3Barclays rides payments-as-a-service wave...
8908 views comments | 16 tweets | 12 linkedin
hands typing furiouslyThe Digital Trade Chain: the blockchain tr...
8409 views 0 | 8 tweets | 16 linkedin
Mastercard and Scotiabank join Enterprise Ethereum AllianceMastercard and Scotiabank join Enterprise...
7486 views comments | 25 tweets | 16 linkedin