According to a fraud study of more than 6,100 consumers across 20 countries, one in four consumers has been the victim of card fraud within the last five years. The study, conducted by ACI Worldwide and Aite Group, also indicated that 23 percent of consumers changed financial institutions after experiencing fraud.

Percentage of respondents who have experienced card fraud in the past five years

Cardholders experience fraud at very different rates around the globe, and each type of card has unique fraud challenges, the study found. The U.A.E. has the highest rate of fraud overall at 44 percent, followed by China at 42 percent, and the U.S. and India at 41 percent each. Additionally:

•63 percent of respondents who have experienced fraud said they are more likely to use their cards less;

•50 percent exhibit at least one risky behavior, which puts them at higher risk of financial fraud;

•55 percent are "very concerned" about reclaiming their financial identity if they fall victim to identity theft; and

•More than 1 in 10 has experienced fraud multiple times during the past five years.

"Given this latest data, financial institutions have their work cut out for them, both in terms of educational and preventative measures," said Shirley Inscoe, senior analyst at Aite Group. "Consumers lack confidence in their bank's ability to protect them from fraud, so banks must remain vigilant in their fraud migration efforts or face increased customer attrition."



Confidence wavering in the face of fraud


As organized fraud rings relentlessly develop new methods of stealing funds and identities, consumers are increasingly losing confidence that there is anything that can be done to reverse this downward spiral:

•23 percent changed FIs due to dissatisfaction after experiencing fraud;

•Nearly 2 in 10 lack confidence that their FI can protect them from fraud; and

•43 percent who received replacement cards as a result of data breach or fraudulent activity use their new card less than they used their original.

"Consumers are increasingly concerned about fraud, and are losing confidence on a variety of levels," said Mike Braatz, senior vice president of payments risk management solutions at ACI Worldwide. "This has immediate and long-term implications on customer loyalty, revenue and fee income."



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Survey methodology


ACI Worldwide conducted online quantitative market research via a March 2014 survey of 6,159 consumers; approximately 300 consumers, divided equally between men and women, participated in each of the 20 countries. Of the total, 6,041 own one or more type of payment card (i.e., credit card, debit card, prepaid card).