ACI Worldwide, an e-banking and payment solutions company, announced the results of the Global Consumer Card Fraud 2016, titled “Where Card Fraud Comes From”. The survey, carried out in partnership with the Aite Group, points out that 49% of Brazilians said they had suffered some type of card fraud in the last five years. This number puts the country in second place in the ranking – only behind Mexico. In 2014, when the last study was done, the country was in 8th position.
The survey questioned more than 6,000 consumers in 20 countries and revealed that fraud with three types of cards (debit, credit and prepaid) is increasing worldwide. Compared to the survey released in 2014, 14 nations reported an increase in fraud. Mexico, Brazil and the United States lead the rankings, with 56%, 49% and 47% of people claiming to have suffered some form of fraud in the last five years, respectively. The regions with the lowest rates are the Netherlands (14%) and Hungary (9%).
"This study confirms that card fraud continues to be an issue of major concern for consumers around the world," said Andreas Suma, vice president, ACI Worldwide. "It's no surprise that there's a direct relationship between fraud and low consumer confidence. And, as the data illustrates, it's more critical than ever for financial institutions to actively implement and maintain effective fraud prevention solutions that meet security and customer experience."
With 2,260 data breaches confirmed in 2015 alone, security remains a critical issue within the financial services industry and among consumers. Despite the adoption of fraud analysis solutions by banks and merchants, along with the massive use of EMV (card with chip) in most countries, card fraud continues to grow in much of the world.
"The data also shows that consumer education and customer service continue to be a challenge for financial institutions worldwide, as risky behavior is directly related to the increase in fraud," says Ben Knieff, senior analyst at Aite Group survey.
Risky behaviors increase fraud
Risk behaviors, such as leaving the cell phone unlocked when not in use or carrying the card password written down with you, are directly related to fraud, and the risk has grown increasingly due to the global increase in the use of smartphones and tablets. Globally, 54% of consumers showed at least one risky behavior, up from 50% in 2014. Among these people, 58% have experienced fraud. Among the most careful, 36% went through this situation.
European countries have less card fraud than the Americas, due to the early adoption of EMV technology and other technological advances that ensure safer transactions.
Brazil is the country most dissatisfied with post-fraud care
Brazil is the country with the most dissatisfied consumers with the treatment of banks after the fraud experience. Only 65% of people are partially or fully satisfied with their banking institutions, against 90% in the United States, the country with the most satisfied consumers with the treatment of banks.
Among Brazilians who experienced fraud, 18% switched financial institutions in 2016 – a much lower number than in 2014, when 33% claimed to have changed. Despite not fully trusting banks, most (60%) people believe that they have done their best to protect their customers from fraud.
Globally, 14% of consumers lack confidence that their financial institution can protect them from fraud, an improvement of nearly 20% compared to 2014. Additionally, 1 in 5 people switched financial institutions due to dissatisfaction after going through frauds.
about the search
ACI Worldwide conducted online and quantitative market research in Q2 2016 and surveyed 6,159 consumers. The study was conducted in 20 countries: Brazil, Canada, Mexico, United States, France, Germany, Italy, Netherlands, South Africa, Sweden, United Arab Emirates, United Kingdom, Australia, India, Indonesia, New Zealand and Singapore.
