Card fraud is fallling- but we still don't trust our credit and debit cards

25 June 2014

credit cardsMore than a quarter of UK people have been the victim of some kind of card fraud in the last five years, according to new figures from ACI Worldwide’s latest global survey. However, this is actually good news as the 28% who reported fraudulent activities associated with their credit or debit card is actually lower than the 34% who did so in 2012.

Top of the card fraud pops is the UAE, with 44% of people reporting some kind of fraudulent experience, followed by China and India on 42% and 41% respectively. While the UK’s card fraud record appears to be improving, it has a long way to go to catch up with some of its neighbours such as Sweden’s 10% or Germany’s 16%. Even digital crime central Russia reports a UK-beating 23%.

However, it seems that despite falling levels of card fraud, people are viewing cards even more suspiciously than before. ‘Back of the wallet’ relegation, where a card replaced after fraud is used less owing to a perceived fear of a repeat incident is alive and well, with 36% of UK consumers who replaced a card after fraud saying they used the replacement card less often than the original.

While it is difficult to make sweeping generalisations on global attitudes to fraud incidents given the vastly differing circumstances in each country surveyed, the study does suggest that consumers are growing more tired of fraud as an ingrained phenomenon, a trend exacerbated by the rise of online data breaches.

“Consumers are increasingly concerned about fraud, and are losing confidence on a variety of levels,” said ACI Worldwide senior vice president, Mike Braatz. “They are unsure that their financial institutions can protect them against fraud; they use replacement cards less often due to a loss of confidence in the card or card issuer, after experiencing fraud; and post-fraud, they often change providers or their cards go to back of wallet” he finished, without really offering an kind of useful solution.

But if people really are shying away from using credit and debit cards, technology reportedly next on the list to go the way of the archaic cheque, how will people ever come to terms with using even PIN-less cards, let alone the new mobile and NFC technologies? Is it a people thing, or do we just need to have more trust in the card providers to sort us out if things go wrong? Did we really just put banks and trust in the same sentence…?

TOPICS:   Credit Cards   Banking


  • Samantha
    What bugs me is that to protect my email account I need a password between 8 - 16 character with at least 1 upper case character, 1 number and 1 symbol. I in fact actually have 2-step authentication on my email. But to protect my bank account I get 4 numbers. Would it be so hard to change that to 6 digits at least? or let us pick a number of digits between say 4 and 10? And why can't I have 2 step authentication on my credit card? pick a number say £50, and any transaction greater than that I have to confirm via text message. I really don't mind if it takes me an extra 30 seconds at the checkout, but I could even whitelist my local supermarket to avoid that. Why is security in the banking sector seemingly so far behind?
  • JonB
    In my experience the buyer protection offered with credit cards is second-to-none. I have paid for items several times in the past which have either not arrived or the vendor has gone bust, and my credit card companies have always refunded me and dealt with the legal fall-out. It has been hassle-free from my part - sometimes only taking a few days for the credit card company to credit my account. I therefore would not hesitate to use my cards to buy things, safe in the knowledge that I am protected from sales fraud. Having said that, I am quite reluctant to allow online companies to store my card details. I prefer to type the numbers in every time as a precaution against misuse.

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