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How big of a problem is fraud? Vantiv’s “ShopTalkTM” report reveals new fraud statistics

 

 

  • Research finds 43 percent of consumers have experienced credit or debit card fraud
  • 70 percent of consumers believe embedded chip cards are more secure
  • 68 percent review their credit card transactions online regularly to protect themselves

How big of a problem is fraud? A new Vantiv and Socratic Technologies survey, named ShopTalk, found more than 40 percent of consumers have experienced credit or debit card theft or fraud, with 65 percent dealing with it in the last two years. The survey defined fraud as charges on a consumer’s debit or credit card that the cardholder did not authorize.

“At Vantiv, we are shining a light on consumer card fraud so we can help businesses, large and small, understand the risk and better secure their systems and their customers’ data,” said Larry Drury, chief marketing officer at Vantiv. 

An overarching theme of this edition of Vantiv ShopTalk is the adoption and knowledge around “smart chip cards,” those cards that use an embedded microchip to conduct the transaction instead of the magnetic strip on the back of the card. Vantiv found seven in 10 consumers surveyed believe chip cards are more secure than traditional magnetic stripe cards and mobile wallets.

Other key findings from ShopTalk include:

  • Nearly three-quarters of consumers have seen, heard or read about chip cards in the last three months.
  • 58 percent of those surveyed are extremely or somewhat knowledgeable, while one-quarter are not knowledgeable at all.
  • 61 percent (of respondents surveyed between February and June 2015) have at least one chip card, with most receiving the chip card in 2015.
  • 75 percent of consumers say they are likely to switch their primary card to one that is chip-enabled, while more than one-third would open a new credit card to get this technology.

“These EMV or chip cards go a long way in protecting consumers from fraud, but consumer adoption and education are very important for the migration to be successful quickly,” said Patty Walters, senior vice president, EMV Issuing and Acceptance Strategy, at Vantiv. “We still have a long way to go to have all consumers and business owners understand the need for more security to protect card data throughout the payments ecosystem.”

Vantiv ShopTalk also shows consumers are actively protecting themselves against card fraud. Cardholders told surveyors they review credit card transactions regularly online (68 percent), shred all mail that contains personal or credit card information (63 percent) and review credit history regularly through credit reporting companies (37 percent).

Consumers are aware and working to protect themselves during online purchases too. Some examples include keeping operating systems, browsers and anti-virus software up-to-date (60 percent), never giving card numbers to a site without SSL (Secure Sockets Layer) protection (53 percent) and using payment services such as PayPal whenever possible (44 percent). 

Vantiv and Socratic Technologies conducted the survey of 500 consumers over the age of 18 who have a banking relationship from June 1 to June 20, 2015. Have a comment on ShopTalk? We would love to hear it, so share on Twitter, Facebook, LinkedIn, Google+ and YouTube