This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

42 Percent Of US Consumers Report Card Fraud





U.S. consumers aren't the only victims of card fraud, but they are among the most likely to experience fraudulent activity, according to a recent study.

The annual ACI Worldwide Global Fraud Report found a quarter of all consumers across the globe had been impacted by pre-paid, debit or credit card fraud in the past five years. However, the problem was more prevalent in the United States, with 42 percent of those surveyed saying they had direct experience with fraudulent activity.

The only country reporting a higher level of fraud was Mexico, with 44 percent of those surveyed saying they had experienced card fraud in the past five years. Countries with the lowest levels of fraud were The Netherlands and Sweden, which tied with only 12 percent of their residents experiencing fraud.

Consumers want banks to notify them

In addition to looking at the rate of pre-paid, debit and credit card fraud, the study considered consumer attitudes. An overwhelming number of those surveyed expressed a desire to partner with banks when it came to fraud prevention efforts. Overall, 82 percent of respondents said they would like to be notified of unusual activity on their account prior to the bank taking action.

Consumers prefer to be called on their mobile phone immediately when suspicious activity has been detected. Email and text messages were other methods by which many consumers said they would want to be notified. The 2012 survey results were notable because they did not include notification by home phone, which was the second most preferred method cited in the 2011 survey.

Cards use drops but risky behavior continues after fraud

After an experience with card fraud, 21 percent of cardholders stopped using their accounts or switched to a new card. Of those who received a replacement card, 45 percent of those surveyed used the new card less than the original one. In addition, half of those who experienced card fraud reported using cash or another payment alternative rather than their pre-paid, debit or credit card.

While 49 percent of consumers were concerned identity theft could harm their financial rating and status, many continue to engage in behaviors putting them at risk for card fraud.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs