Operating in a customer-not-present environment can be risky business. And, doing so without the proper tools is downright dangerous. The financial services and payment industries are increasingly becoming targets for fraudsters looking for illegal financial gain. Year after year, fraud losses continue to rise and businesses that do not heed the statistics run the risk of becoming one.
According to The Nilson Report, a source of global payment news and analysis, the issuers, merchants, and acquirers of credit, debit, and prepaid cards worldwide experienced gross fraud losses of $11.27 billion in 2012, up 14.6% over 2011.
Here are some other interesting highlights from the report:
- Gross fraud losses equaled 5.22¢ per $100 in total volume, up from 5.07¢ per $100 in 2011.
- Fraud, as a percentage of total volume, was lowest for PIN-based debit networks worldwide at 1.10¢ per $100 in total volume.
- Fraud losses on all general purpose and private label, signature and PIN payment cards reached $5.33 billion in the U.S. last year, up 14.5%.
- The U.S. is the only region where counterfeit card fraud continues to grow consistently.
- The U.S. accounted for 47.3% of global card fraud losses last year.
- Merchant and acquirer losses occur mainly on card-not-present (CNP) transactions on the web, at a call center, or through mail order.
The statistics above mimic the findings within our own 2013 Fraud Report. One key highlight in our report is that 57% of respondents reported that credit, debit and/or prepaid card fraud is the most prevalent in their industry. Additionally, 66% of respondents noted that they have experienced suspected fraud attempts within the last 12 months. Click here to download IDology’s 2013 Fraud Report.
Increasing the bottom line by managing risk and loss is something successful companies are always looking to improve. At IDology, we offer numerous solutions that can be implemented to help not only combat fraudulent activities but also drive revenue and decrease costs. Our solutions are extremely versatile and can be deployed online, in-person, and in call centers.
Our team is constantly enhancing our solution in order to stay ahead of the fraud landscape. Some of our newest developments, including ID scan technology and global identity verification, only strengthen our ability to help our customers drive revenue, deter fraud, decrease costs and meet compliance.