FICO has released new research from its FICO® Falcon® Fraud Consortium in the US. It revealed some intriguing credit and debit card fraud trends in the data snapshot we studied, from January 2010 to September 2011.
Online, mail and telephone order fraud grew at twice the rate of counterfeit fraud. Fraudsters are clearly exploiting the growth of online shopping, and the fact that online and other card-not-present fraud types offer a more anonymous means to operate.
Fraud losses for debit cards showed larger increases than credit portfolios. This was, in part, driven by a 15% increase in authorization volume and a rise in the use of techniques like skimming.
It’s worth noting that the modest growth in US counterfeit fraud attempts contrasted with findings from our European fraud consortium, which FICO released in January. The European card data showed a 60% decline in counterfeit fraud, due in large part to the implementation of chip and pin technology in the UK and other European countries. Of course, chip cards are not yet well-distributed in the US because EMV is not mandatory. The expected introduction of EMV technology in the US promises to boost protection against counterfeit losses. To read the full story click on the link.
Source: FICO Banking Analytics Blog