Is credit card fraud declining? Not yet

United States Among the Worst in the World for Credit Card Fraud

Credit card fraud rates are increasing every year, and the only upside seems to be that we aren’t the worst.

That would be Mexico, where more than half (56 percent) of credit card users have been hit with fraud this year.  Among 20 countries, the U.S. ranks third (at 47 percent) for credit card fraud, according to a new survey by electronic payments company ACI Worldwide.

One possible reason: Americans were late to adopt EMV chipped cards, leading to more data security breaches. This is the second time the U.S. has been in the top three. Brazil ranked second. All of this is bad news for the credit industry, which is worried we won’t trust their cards anymore.

“It’s no surprise that there is a direct correlation between fraud and lower consumer trust and card loyalty,” says ACI Worldwide VP Andreas Suma.

Around the globe, 30 percent of cardholders have experienced card fraud in the last five years and many report using replacement cards less because of past fraud on the account. More than 10 percent of those surveyed do not trust their financial institution to protect them from fraud. In fact, one-in-five respondents jumped ship to a new bank because of how they were treated after experiencing fraud.

Only two countries on the list — India and the United Arab Emirates — saw a decrease in fraud from last year. However, with 4 billion data records stolen in the last three years, security is still an issue for everybody, all around the world.

“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,” Suma says.

What to do if you’ve been hacked

Identity theft is on the rise and more than 64 percent of Americans experience “misuse of an existing credit card” – the most common type of fraud. Most ID theft crimes go unnoticed for at least a month, and that’s way too late to minimize the damage. According to the Consumer Financial Protection Bureau (CFPB), you should monitor all your accounts closely and often to see if there’s any suspicious activity. But if you believe your credit card has been hacked, you can:

  1. Check your accounts for unauthorized charges — monitor your activity constantly by either logging in to your provider’s website, app, or getting email or text alerts.
  2. Report suspicious activity immediately — If something doesn’t look right, report it when you see it. Cancel the card immediately and consider changing your PIN as well.
  3. Submit a complaint — Providers will usually take around 10 days to investigate the charges and you have a right to see the results of the investigation. If your provider is giving you problems, submit a complaint.
  4. Ignore those account verifications — No one should ever contact you and ask for your personal information. If you ever get contacted about this, report it immediately.

For more information on protecting yourself against credit card fraud and identity theft, visit our Solutions Center.

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