Nearly half of consumers around the world are concerned about card fraud, yet many fail to take precautions to prevent it, suggesting banks should do more to educate consumers to reduce their susceptibility to fraud, recently released survey data show.
ACI Worldwide surveyed 4,200 consumers in 14 countries online in December, inquiring about their concerns regarding card fraud. Among the countries where participants lived were Australia, Brazil, the United States, China and Italy.
In the U.S., 10% of respondents said they carry their personal identification number with their card. The problem is worse in other countries, as 21% do so in Italy, as do 23% in India and 27% in China, the survey data suggest.
Consumers generally are careless with their PINs because they may know they are not liable for losses, such as in the United States, or they may a lack proper education, as may be the case in India and China, says Jasbir Anand, ACI lead solutions consultant.
Of those surveyed, the biggest fear of 49% of consumers related to card fraud is having their accounts entirely wiped out or not having the ability to pay bills and expenses.
The economy also is causing anxiety, as 74% of U.S. consumers surveyed said it has them more worried about fraud. Indeed, 58% of U.S. respondents think card fraud is increasing, and 37% believe they have less money and cannot afford to be victimized by fraud, ACI says.
About 54% of U.S. consumers also worry about card fraud occurring overseas during travel, and 65% worry more about using their card online, the survey data suggest.
Card issuers can address all such consumer fears with better consumer education about fraud, Anand says. “Banks should have a better education strategy to tell consumers how they can protect themselves, in terms of providing actual tips,” he says.
For example, issuers should advise their cardholders not to use the same PIN for all their cards and to monitor their transactions, Anand says. “With online banking and mobile banking giving consumers more opportunities to check and review transactions, consumers should be more diligent in identifying suspect transactions,” he says.
Respondents globally also expressed concern about how crooks were using stolen funds, notes Anand. Asked if they were worried about the wider impact of card fraud on society, such as stolen funds being used for organized crime or terrorist activities, 15% of all consumers ACI surveyed said it was their biggest concern.
That percentage is higher than the overall 10% whose main concern is damage to their own credit rating, according to ACI.
