One-Third of All Credit Card Fraud Loss Occurs in U.S.
According to the latest Nilson Report, the United States accounts for more than one third of credit card fraud loss around the world. The worldwide losses for 2015 reached $21.84 billion, with the U.S. losing $8.45 billion (38.7%).
Card issuers took the biggest hit from fraud losses, paying out $15.72 billion. Merchants and card acquirers lost $6.12 billion. Most of the fraud came from counterfeit cards used at ATMs and payment terminals.
Global fraud loss increased by 20.6% compared to the previous year. America’s conversion to chip cards has helped reduce the country’s fraud risk. Only 2% of card fraud in 2015 came from chipped cards. The report says that 36% of purchases made through Visa, MasterCard, Discover, Union Pay, American Express and JCB are now backed by EMV technology.
Experts predict credit card fraud will reach a high of $32.82 billion in 2019, but then decline to $31.67 billion by 2020. The continued adoption of chip cards may lead to some of this reduction, along with the expansion of mobile wallets and other payment options with enhanced security features.