The survey concluded two-thirds of respondents were targets of attempted or actual fraud, while 28 percent reported increased fraud attempts. The study also found fraudulent checks were used most often (followed by Automated Clearing House or ACH), and the typical loss in 2011 was $19,200.
Underscoring the need for strong communications during fraud resolution, more than 20 percent of respondents reported they would stop using, or switch from, the card impacted by fraudulent activity!
The results of this survey show card fraud continues to be one of the greatest threats and concerns for consumers, FIs, and retailers. These results should serve as a call-to-action for FIs to remain constantly vigilant and earn the trust of customers by working with them to combat fraud.
The study also found consumers fear identity theft, yet continue risky behavior. Identity theft replaced credit card fraud as the greatest concern from fraud exposure in the 2012 survey. Forty-nine percent of respondents indicated they were very concerned about possible harm to their financial standing and rating.
Even so, consumers continue to exhibit risky behaviors that put them at higher risk of financial fraud. Some of these behaviors include keeping written records of PIN numbers, throwing un-shredded documents containing sensitive information into trash bins, and using public computers or computers without security software for Internet banking services and to shop online.
The good news is that the survey concluded consumers want to partner with FIs for fraud prevention. If their FI notices unusual activity on their account or card, 82 percent of respondents said they were “very interested” in being notified prior to the FI taking action. According to the survey, consumers prefer immediate and direct communication from their FI when fraudulent activity is detected. The most preferred method of contact was found to be a call to the respondents’ mobile phone, followed closely by e-mail or text message.
FIs must provide fast, easy recovery processes for any customer who experiences fraud. It’s also essential for FIs to educate their customers about specific ways to protect their accounts and information against fraud, and to keep them informed of the FI’s fraud policy and processes. There are technologies that exist today to make it easy for FIs to enlist their customers in the fight against payments fraud, and we’re proud to have launched one this month – our new mobile app, SHAZAM BOLT$, sending near real-time email alerts to cardholders anytime a suspicious purchase hits their associated account.
By combining the latest technology with clear communication and effective education in place, FIs can work together with customers to help prevent payment fraud losses in 2013.