US: card-not-present fraud higher than counterfeit fraud

Friday 24 August 2012 13:54 CET | News

During January 2010 to September 2011, the US payments space has registered a continuing shift towards online, mail-order and telephone-order fraud versus counterfeit fraud, recent statistics have unveiled.

According to data released by FICO Falcon Fraud Manager Consortium, card-not-present fraud losses increased at twice the rate of counterfeit card losses. Figures released in January on European credit cards have shown a 60 percent decline in counterfeit fraud, mostly as a result of the implementation of chip and PIN technology in the UK.

With regard to debit cards, FICOs analysis has pointed out that usage increasing sharply over the period of the analysis, with a 15 percent increase in overall authorization volume (more people are using debit cards), and an increase in techniques such as skimming, where a criminal installs a device at an ATM or self-checkout aisle at a grocery store to collect personal data, such as debit card numbers and PINs, remotely. According to the source, the top three sources for debit card fraud were ATMs, grocery stores followed by automated fuel dispensers. Top merchant categories for credit card fraud included grocery stores, restaurants and online retailers.

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Keywords: online fraud, internet fraud, FICO Falcon Fraud Manager Consortium, counterfeit fraud, credit cards, online retailers
Categories: Securing Transactions | Digital Identity, Security & Online Fraud
Countries: World
This article is part of category

Securing Transactions