Despite concerns regarding credit card fraud, consumers who have experienced a problem generally give their card issuer’s response high marks, New York-based management consulting firm Auriemma Consulting Group concludes in its most recent Cardbeat report. Auriemma based its findings on the results of a survey it conducted in December involving 522 cardholders.
In its report, Auriemma notes that 36% of respondents reported being victims of credit card fraud, an increase of 13% since 2007, and 63% said their issuer notified them of a possible security breach. Moreover, 74% of respondents were “very” satisfied with their issuer’s actions to rectify a fraud problem, and 19% were “reasonably” satisfied, according to the Cardbeat report.
New tactics such as deploying more dedicated service representatives to notify consumers of suspicious activity, especially using text messaging, have helped issuers reduce both identity theft and card fraud, leading consumers to notice and acknowledge their efforts, the report notes.
“Issuers are getting kudos from cardholders for being proactive rather than reactive,” Ed Falco, managing associate of Auriemma, tells PaymentsSource. Overall, with issuers using more-sophisticated technology and better forensic tools, consumers are feeling they have better protection, Falco says.
Most consumers victimized by card fraud actually show higher levels of trust and confidence in their bank’s ability to keep account information safe compared with those who never have had such problems, Nancy Stahl, Cardbeat editor, notes in a recent press. Moreover, it is good to see consumers willing to say something positive about banks, in light of current negative sentiments, she adds.
