3 credit card fraud statistics and the impact on small business
Small-business owners have probably heard about data breaches before. Protecting sensitive customer data and credit card numbers is at the pinnacle of importance in the merchant landscape now, especially considering the recent high-profile breaches at major domestic retailers.
Securing and protecting sensitive customer information is a vital aspect of your merchants’ success, which is why implementing the right technology and payment infrastructure is critical. Keeping that in mind, here are three credit card fraud statistics and their implications for small businesses:
1. 43 percent:
According to a recent JPMorgan study, 43 percent of financial services respondents were exposed to fraud attempts and attacks in 2013, reporting that credit and debit cards were targeted. In total, nearly two-thirds of respondents were subject to actual or an attempted payments fraud in 2013. Businesses that accept credit cards are at risk which puts their customers at risk. Small businesses can't afford to not to have the payment security that helps protect their business. Leaving customers susceptible to a potential breach is not only risky, but bad for business and customer retention
The severity of a data breach can vary depending on the type of business and the industry, but JPMorgan's study found companies, on average, lost more than $23,000 in 2013 due to cyberattacks. Small-business owners should keep this in mind going forward, as the financial ramifications of a data breach are broad and potentially crippling for local merchants. Upgrading payment terminals and credit card readers to comply with the latest security regulations, including EMV and PCI, is a great way to mitigate the potential of sensitive financial information being stolen. The latest security measures are designed to help protect sensitive data.
3. 47 percent:
According to recent data released by the Payments Security Task Force, nearly half of U.S. merchant terminals will be EMV-capable by the end of 2015. While credit card fraud is an issue small-business owners have to be mindful of, the industry is working to combat fraud through modern-day technology. Chip cards and EMV chip card capable terminals help reduce credit card fraud. Chip cards generate a one-time code with every transaction making it nearly impossible for counterfeiters to duplicate them and use them for in-store fraud.