Global Consumers React to Rising Fraud: Beware Back of Wallet
Report Summary
Global Consumers React to Rising Fraud: Beware Back of Wallet
Payment fraud alters consumers’ relationships with their credit and debit cards and may change the types of payments they use.
Boston, October 15, 2012 – A new report from Aite Group provides an overview of consumers’ attitudes toward various types of financial fraud, including credit, debit, and prepaid card fraud, and discusses the actions they take subsequent to a fraud experience. Based on a Q3 2012 ACI Worldwide study of 5,223 consumers in 17 countries, this report gauges the reactions of fraud victims and the attitudes of other consumers, broken out by country. It also reveals what financial institutions can do to keep their cards from going to the back of customers’ wallets.
Thanks to the growing sophistication of fraudsters worldwide and the highly organized nature of many types of crime, fraud is an increasing reality in the consumer financial experience. In fact, survey results indicate that one in four cardholders has experienced fraud. While financial fraud is an equal-opportunity crime—one that impacts people worldwide—rates of fraud fluctuate widely from country to country. Consumers worldwide are concerned about financial fraud but are also generally pleased with their financial institution’s responsiveness to the problem. Even so, instances of payment fraud alter consumers’ relationships with their credit and debit cards and may change the types of payments they use.
“Twenty-seven percent of all consumers surveyed in 17 countries worldwide have been victims of card fraud,” says Shirley W. Inscoe, senior analyst with Aite Group and author of this report. “With nearly half of this population changing their payment method after the incident, the impact of fraud on financial institutions and card issuers is tremendous.”
This 68-page Impact Report contains 51 figures and 25 tables. Clients of Aite Group’s Fraud & AML service can download the report.