One of my family members recently experienced debit card fraud where a scammer stole her card information and went on a $5,000 shopping spree in the span of an hour and a half. How the scammer got a hold of her information is unknown, but she quickly contacted her credit union to notify them so the necessary steps could be taken to prevent the scammer from making additional purchases on her account. Her credit union incurred the loss, increasing her loyalty to the brand. Meanwhile, her credit union’s bottom line took a $5,000 hit…but it could have been even more had the fraud not been detected within 1.5 hours of use.
According to Cardhub.com, credit and debit card fraud resulted in $16.31 billion worth of losses in the U.S. in 2014. Card issuers and merchants incurred 62% and 38% of those losses- the issuer losses occurring mostly at the point of sale from counterfeit cards and the merchant losses occurring mostly on card-not-present transactions.
While many credit unions are now switching to EMV chip cards, cybercriminals are getting more creative and continue to scam consumers at an alarming rate. That said, here are some proactive ways to combat debit and credit card fraud... CLICK HERE TO READ THE REST