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Card fraud continues to generate tremendous losses

Categories : Cash generates security, Cash is trust, Costs of cash versus costs of electronic payment instruments
July 24, 2017
Tags : Card payments, Cybercriminality, Data breach, Fraud
Losses due to card fraud should reach a record high in 2017 and continue increasing significantly in the coming years.
Communication Team / Equipo de Comunicación
According to the experts, losses due to card fraud might hit a record high in 2017, after a brief drop last year. Furthermore, the 2016 Nilson Report – which provides annual analyses of the global card and mobile payment industries – estimates that card swindling should grow by 42% in the next three years, to a total of $31.67 billion by 2020. And this is just the visible tip of the iceberg: there are far more costs associated with card fraud as highlighted in the report The Hidden Costs of Card Payments.
Various factors might be cited to explain this significant increase. First, card issuers will no longer be able to charge back non-EMV merchants – including gas stations – for purchases under $25. In addition, only 10 fraudulent transactions will be charged back per account. Besides, traditional attacks such as card skimming and data theft continue to generate significant losses. In 2016, the amount of money lost to card skimming increased by 70% compared to 2015, without mentioning the 546% rise from 2014 to 2015.
Moreover, the craze for e-shopping does not contribute to reverse the trend as issues with card verification values used for online purchases occur continually. Robert Jarosinski – Consultant for risk and compliance solutions at CUNA Mutual Group – stated during a conference that criminals continue to be ahead of the game despite the constant development of sophisticated anti-fraud technologies and tools. Recent attacks carried out against central banks and other financial institutions only confirm this assertion.  
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