By Staff writer
New report reveals 17% drop in percentage of citizens saying they have been impacted by card fraud
Dubai has managed to buck the trend of increasing card fraud cases around the world since 2014, according to a new report.
The report by ACI Worldwide and Aite Group said the emirate saw a 17 percent fall in the percentage of citizens who have been impacted by card fraud over the past two years.
The percentage dropped from 44 percent in 2014 - when the UAE topped the global list - to 27 percent this year, with India the only other country of the 20 covered to register a decline.
Globally, 30 percent of consumers said they have experienced card fraud in the past five years, said the fraud study of more than 6,000 consumers across 20 countries.
It said that compared to ACI’s 2014 benchmark study, card fraud rates — unauthorised activity on three types of payment cards (debit, credit and prepaid) — is on the rise worldwide.
Risky behaviours, such as leaving a smartphone unlocked when not in use, have a direct correlation to fraud — and the overall risk for fraud is rising due to the global increase in smartphone and tablet usage, the report said.
In 2016, Mexico, Brazil and US topped the list of countries experiencing most card fraud. Mexico led the way at 56 percent, followed by Brazil at 49 percent and the US at 47 percent.
In 2014, the UAE, China, India and the US topped the list.
The US is the only country to remain on the top three list both years, due in part to being a laggard in the roll-out of EMV chip cards, with skimming and data breaches continuing to be security challenges, the report said.
“Card fraud rates are on the rise in the majority of countries included in the survey,” said Ben Knieff, senior research analyst, Aite Group. “The data shows that consumer education and customer service remain a challenge for financial institutions globally, as risky behaviour has a direct correlation to experiencing fraud.”
With 2,260 confirmed data breaches in 2015 alone, security remains a priority within the financial services industry and among consumers.
“This study confirms that card fraud remains an issue of deep concern for consumers around the globe,” added Andreas Suma, vice president and global lead, fraud and data, ACI Worldwide.
“It’s no surprise that there is a direct correlation between fraud and lower consumer trust and card loyalty, including a primary contributor toward ‘back of wallet’ behaviour. And as this data illustrates, it’s more critical than ever for financial institutions to implement and actively maintain effective fraud prevention solutions that address fraud, security and customer experience needs.”
The report showed that 14 percent of consumers globally lack confidence that their financial institution can protect them against fraud, an improvement from nearly 20 percent in 2014.
It also revealed that 17 percent of debit and credit card holders cite having experienced fraud multiple times during the past five years, compared to 13 percent in 2014.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.