Credit card fraud statistics reveal that online and card-not-present fraud is expected to increase in the coming years.
By Kelsey Seidler
Despite the introduction of more secure chip technology (also known as Europay, Mastercard, and Visa, or EMV technology), credit card fraud remains a concern for retailers and consumers everywhere. The latest data reveal that criminals aren’t giving up on card theft; they are just changing their tactics. This post provides a snapshot of recent credit card fraud statistics so that you can stay informed… Read the full article.
Because there are many types of return fraud, retailers should understand which strategies will do the most to combat the types of fraud it suffers.
By Garett Seivold
More than 5 percent of holiday returns in 2017 are expected to be fraudulent, according to retailers. That would put the total loss to retailers from return fraud—for just the holiday season—at more than $2 billion. Fraud statistics for the year suggest that retailers will lose more than $9 billion from fraudulent returns, according to data trends reported by the National Retail Federation (NRF).
Tight return policies are an obvious way for retailers to attempt to minimize losses due to fraudulent returns—and some retailers are doing just that, according to ConsumerWorld.org’s annual survey on return policies… Read the full article.
The answer is – plenty.
By Bill Turner, LPC
In case you aren’t familiar with the terms, let’s start with a couple of definitions:
Dark web – a collection of websites that exist on an encrypted network and cannot be found by using traditional search methods or visited by traditional browsers
Bitcoins – a worldwide cryptocurrency and digital payment system. Called the first digital currency since the system works without a central repository or single administrator
According to Anna Lothson in a post on Rippleshot in August, the dark web market has become a haven for hackers to access credit card data and then commit credit card fraud. The packaging and auctioning of compromised cards occurs faster than a bank can detect it. The monetization of compromised cards has become a sophisticated industry using the dark web. Also, the reselling of stolen credit and identity data through the dark web is running rampant and creating a whole new business for hackers… Read the full article.
Despite new chip technology, credit card fraud news stories are on the rise.
By Bill Turner, LPC
Many articles in the LPM Insider talk about EMV chip technology in credit cards and how this technology fights credit card fraud. While it’s true that the chips make it much more difficult for fraudsters to create counterfeit credit cards, has the technology caused a major decline in credit card fraud news stories and statistics? Not really. A new study from the research firm of Javelin Strategy and Research indicates that incidents of identity theft, many of which are generated through credit cards, rose 16 percent in 2016. These incidents cost $16 billion in losses to individuals and affected 6.15 percent of all consumers.
So, what’s going on? Simply put, fraudsters are working diligently to stay ahead of new bank procedures and technologies. And, if you think of the numbers, banks, financial institutions and retailers have to be right 100 percent of the time to protect their clients and customers. Fraudsters only have to be right (or lucky) 1 percent of the time to potentially get rich… Read the full article.
Loss prevention professionals should be knowledgeable when it comes to credit card fraud basics.
By Bill Turner, LPC
Credit card fraud is defined by Wikipedia as “a wide-ranging term for theft and fraud committed using or involving a payment card, such as a credit card or debit card as a fraudulent source of funds in a transaction. The purpose may be to obtain goods without paying, or to obtain unauthorized funds from an account.”
Just as the use of plastic for purchases is increasing, so, too, is credit card fraud. According to the Nilson Report in October 2016, global credit card and debit card fraud resulted in losses of $21.84 billion in 2015. Card issuer losses occurred mainly at the point of sale from counterfeit cards, while the largest merchant losses were driven by card-not-present (CNP) transactions when customers buy online or pick up in store.
In 2015, credit card and debit card gross losses accounted for roughly 6.9 cents per $100 in total volume, up from 5.7 cents per $100 in 2014. Retailers are spending an average of $6.47 billion annually on credit card and debit card fraud prevention. It’s interesting to note that EMV (chip) cards introduced in the United States in 2015 reduced existing credit fraud but drove a 113 percent increase in new account fraud, which now accounts for 20 percent of all fraud losses… Read the full article.