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Credit card fraud is a growing problem that could cost you tens of thousands of dollars in fees and potential losses. The good news? There are many ways to avoid getting tricked, as long as you’re vigilant. Here’s how to do it..
The “card-not-present fraud statistics” is a 7 eye opening credit card fraud statistic. The statistic shows that the number of online transactions has increased and so have the losses.
People may believe that using a credit card for personal or professional purposes is secure, yet credit card fraud is a big worldwide and national issue. Although some individuals spend their whole lives without ever encountering fraud, these seven worrisome credit card fraud statistics demonstrate how widespread it is in our society.
1. Global credit card fraud losses were $27.85 billion.
Credit card fraud is not limited to the United States. In reality, global losses from card theft were $27.85 billion in 2018. This is a 16.2 percent increase from $23.97 billion in 2017. Not only is a 16.2 percent rise in fraud losses significant in a single year, but it becomes much worse when we look at expected losses. According to the Nilson Report, credit card fraud losses will reach $35.67 billion globally by 2023, up 28.08 percent from 2018.
2. In 2018, the United States was responsible for 34% of global fraud losses.
Credit card fraud is generally uncommon, but it is especially common in the United States. In 2018, Americans were the victims of 34% of all credit card theft worldwide. Furthermore, in 2012, the United States accounted for 47.3 percent of all card fraud losses. Fortunately, this is the greatest proportion between 2000 and 2018, so we may rest easy knowing that the trend is decreasing.
3. Credit card fraud accounts for 42% of all identity theft.
In 2019, there were 650,572 complaints of identity theft, including 271,823 incidents (or 42 percent) involving credit card fraud. As a result, card fraud is the most widespread kind of identity theft in the United States. The Consumer Sentinel Network Data Book lists loan or lease fraud as the second-most prevalent sort of identity theft, just behind card fraud. The third most prevalent kind of fraud is phone or utility fraud.
Credit card fraud occurs when someone obtains access to your credit card information and uses it to make an unlawful transaction. In the meanwhile, identity theft occurs when someone obtains your personal information and uses it to commit fraud. Someone may use your details to create a new card in your name in the event of this credit card theft statistic.
4. In 2019, new credit card account fraud increased by 88%.
Credit card fraud is not only a big worldwide and national problem, but certain components of it are also on the increase. In 2019, for example, new account fraud grew by 88 percent over the previous year. When you compare this to previous account fraud, you’ll see a 4 percent drop from 2018 to 2019.
New account fraud is also known as account opening fraud or account origination fraud. When fraudsters use stolen or fictitious identities to open new credit cards, this is known as identity theft. What is their primary objective? As early as possible, often within 90 days, max out the card’s limitations. The Association of Certified Fraud Examiners (ACFE) has identified 15 red flags that banks should check for when a consumer opens a new account to protect you against this occurring.
5. Fraud Losses Are More Commonly Reported by Younger People
Some age groups experience larger fraud losses than others. In 2019, for example, 33 percent of persons aged 20 to 29 reported a financial loss due to fraud. When compared to persons aged 70 to 79, this occurs 20% more often. However, just because those age groups reported most fraud, it doesn’t imply they lost the most money. The median loss was substantially larger among persons aged 70 and older.
According to the Consumer Sentinel Network Data Book, consumers aged 70 to 79 lost an average of $800 in 2019. Furthermore, persons aged 80 and above lost a stunning $1,600 on average, which is a 100 percent increase over those aged 70 to 79. When you compare that to persons aged 20 to 29, the median loss is just $448.
6. In 2019, California had the most credit card fraud reports.
While credit card fraud is a nationwide problem, the severity of the problem varies greatly by state. Card fraud, for example, accounted for 51 percent of California’s 101,639 identity theft claims in 2019, making it the state with the highest. In only one year, there were 51,836 credit card fraud complaints. Florida comes in second with 33,069 fraud complaints, followed by Texas with 27,207.
However, as I already said, card fraud varies greatly from state to state. With just 108 fraud complaints in 2019, Wyoming is the state with the fewest fraud reports. Vermont comes in second with 145 reports, followed by South Dakota with 160.
I estimated the fraud per state by multiplying the total fraud reports for each state by the proportion of card fraud in the identity theft reports for that state.
7. By card type, the major card companies have the most fraud.
By a long distance, global card corporations such as Visa, Mastercard, American Express, and Discover suffered the largest fraud losses. In 2018, these worldwide brands lost a total of $24.86 billion. Nonglobal networks reported the second greatest fraud by card type, with losses of $1.58 billion, or $23.28 billion less than global card businesses. Fraud losses are reported on both domestic and private label cards. However, they barely amount to $1.41 billion in losses when all together.
What Is Credit Card Fraud and How Does It Happen?
When a thief or fraudster takes your credit card or card information, they use it to make unlawful transactions or cash advances. Card fraud is rampant all around the globe, so knowing how to prevent it and what to do if you’ve been a victim is critical.
Cash advance: A short-term cash loan obtained by withdrawing money from an ATM or bank against your credit limit. Cash advances are costly since they normally impose a fee ranging from 3% to 5% of the amount you withdraw.
How to Protect Yourself Against Credit Card Fraud
Despite the fact that fraud is on the rise, there are a few strategies you may use to prevent personal or commercial credit card theft. Here are some simple steps you can do to assist avoid credit card theft in your life:
- Immediately sign the back of your new credit card: When you sign the back of your card, it’s more difficult for someone else to hide or delete your signature.
- Have your cards and cash separate: It’s customary to keep your cards and cash in the same wallet. If your wallet is taken, though, both of those items are also stolen. Keeping your cards in a safe and secure location will help you avoid being a victim of identity theft.
- Report a lost or stolen card straight away: If your card is lost or stolen, contact your issuer right away. No unlawful purchases will be made as a result of this. You may even freeze your card online or using a mobile app with certain issuers.
- Use your card only on safe and reputable websites: Before you use your credit card to make an online transaction, be sure the site is safe and secure. Secure sites have a lock icon in the search box and begin with “https://.”
- Monitor your credit card transactions on a regular basis: Make it a practice to check your credit card transactions on a daily basis. This will aid in the detection of any suspicious behaviour. If you see a questionable transaction, notify the authorities right once.
What to Do If You’ve Been a Victim of Credit Card Fraud
You would never want to be a victim of scam. Statistics on credit card theft, on the other hand, suggest that it might happen to you. Follow these five procedures if you’ve been a victim of credit card fraud:
- Contact your credit card company right away.
- Change your online banking account’s passwords.
- Each of the three major credit bureaus should be contacted to request a credit freeze.
- Keep an eye on your bank statements for a few months following the theft.
- Request a copy of your credit report and notify the authorities if there are any fraudulent inaccuracies.
Conclusion
While these credit card fraud figures are concerning, they do not imply that fraud cannot be avoided. You may avoid being a victim of worldwide fraud by using standard preventive measures such as reporting suspicious activity or a lost or stolen card as soon as possible. You are entitled to financial security.
Credit card fraud is a major issue, and it has been estimated that $5.8 billion dollars were lost in 2016 because of credit card fraud. In the United States, the average person spends about $1,000 on credit cards every year. If you are wondering how much time people spend in jail for credit card fraud, it’s about 3 years. Reference: credit card fraud jail time.
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