I am simply putting the number in context. Credit cards dealing with $8B USD of fraudulent charges per year sounds like a staggering amount until you realize it is a small fraction of all transactions.
According to 2014 Gallup Crime Poll, 69% of Americans worry about having their credit card info stolen, and 27% have already been hit.
And despite the anti-fraud automated data analysis, losses per $100 having been growing from 2010 to 2014, when they reached $16 billion, of which the US accounted for half, despite only generating 21% of transaction volume.
[The] U.S. the third-highest rate of fraud worldwide, and was the only country to remain in the top three from 2014 to 2016.Additional research from the Nilson Report, October 2016 stated that in 2015 alone, the U.S. accounted for 38.7 percent of the worldwide payment card fraud losses
Since the merchants and banks are responsible for fraud on credit cards, they seem to be a bit more on to of things.
But are they?
"Total global payment-card fraud losses were $11.3 billion in 2012, up nearly 15% from the prior year. The United States—the only country in which counterfeit-card fraud is consistently growing—accounted for 47% of that amount, according to the Nilson Report: card issuers lost $3.4 billion and merchants another $1.9 billion."
This kind of inefficiency doesn't come cheap. There's a reason why VISA and Mastercard disallowed merchants to charge more for CC transactions.
EU and others seem to be rushing to implement strong auth, but as a consumer, screw that. Use machine learning and law enforcement to deal with it and let my experiences be unencumbered. Spending 2 minutes to authorize merchants seems like a large annoyance.
How is having your card blocked and having to wait days to receive it not being encumbered?
As for the debit card thing, that wasn't what I was talking about. I was talking about remote payments, where we use direct debit, not debit cards.
For reference, according to the last ECB report in the EU the total value of fraudulent transactions from cards issued by SEPA countries was 0.041% of the total value of transactions (€1.8 billion - That's over 5x less fraud). Only 19% of that was point of sale fraud.
The Fed publishes interesting breakdowns on US fraud types[1]. $3.6 billion card fraud in the US is point of sale - 10x more than the €342 million point of sale EU fraud.
Overall there is $2.62 billion of counterfeit card fraud, $3.46 billion of "Fraudulent use of account number" (whatever that is), $810 million "lost or stolen card" fraud (not an issue with chip and pin), and $360 million "fraudulent application" fraud.
Over the course of a year, $18 billion were lost to CC fraud. Meanwhile, CC transactions totaled about $6 trillion [0] (that was 2010, the most recent I could come up with, but it's been increasing every year for a long time so I'll be generous and use it). That's .3% - clearly affordable on the 2-3% merchants typically pay.
Meanwhile, Mt. Gox defrauded users out of about 650,000 bitcoins [1]. This was a single instance of fraud, remember - I'm trying to be generous. Eyeballing this chart [2], I'm going to give bitcoin a clearly-exaggerated 200,000 BTC in daily transactions, or 73 million BTC in a year. This comes out to .9%, or about 3 times higher than CC fraud.
But remember what I said earlier - CC companies essentially insure you against loss by paying out the fraud themselves and then forcing merchants to raise prices a bit to make up for it. In bitcoin, a given person can easily lose thousands, tens of thousands, millions of dollars, all at once. No recompense. So not only is the rate 3 times higher, the outcome is _way_ worse per dollar lost fraudulently.
I worked in the payment card industry for awhile a few years back. There are entire countries that are blocked by card providers due to fraud.
Unfair or not, it actually makes a difference. I was in a neat position to see some of the attempts in real time. It blew me away how much attempted fraud there is. Think of it like spam email - it's that bad.
So the US fraud total is around $10 billion on purchases of how much? The latest number I could find was a projection for 2017 that said there's $3 trillion of credit card purchases. That works out to something like 0.3 percent which seems pretty low.
Well the post I was replying to specified credit card fraud as the rampant issue, the list your provided seems to just be general financial fraud. I agree that financial fraud in general in the US, and probably globally, is a huge problem.
Maybe I'm wrong and all of that can be blamed on credit card fraud, but I'm not so sure.
For reference, according to the last ECB report in the EU the total value of fraudulent transactions from cards issued by SEPA countries was 0.041% of the total value of transactions (€1.8 billion - That's over 5x less fraud). Only 19% of that was point of sale fraud
$3.6 billion card fraud in the US is point of sale - 10x more than the €342 million point of sale EU fraud.
Overall there is $2.62 billion of counterfeit card fraud, $3.46 billion of "Fraudulent use of account number" (whatever that is), $810 million "lost or stolen card" fraud (not an issue with chip and pin), and $360 million "fraudulent application" fraud.
"In 2018, $24.26 Billion was lost due to payment card fraud worldwide"
https://shiftprocessing.com/credit-card-fraud-statistics/
reply