According to new research, nearly half of U.S. consumers have experienced card fraud, while 56 per cent of fraud victims changed their card use or shopping behaviour after a fraudulent charge. As such, retailers must ensure that they make proactive choices to reduce events of this manner and retain consumer trust.
The 2016 Global Consumer Card Fraud study determined that 30 per cent of consumers worldwide experienced card fraud within the past five years. Moreover, it showed that 17 per cent of consumers experienced multiple cases of fraud, while 40 per cent use their compromised account less frequently. Another recent study found that 15 per cent of fraud victims closed their account, 14 per cent changed online retailers, 12 per cent shopped less online, 12 per cent used their replacement card less and 3 per cent did not use their replacement card at all.
“While consumers typically have zero liability for fraudulent charges, the study findings suggest those who are affected byfraud often lose faith in the ability of their card provider or merchant to protect them,” says Gary Cardone, CEO of eConsumerServices, a dispute mediation firm. “Even though consumers may not be financially responsible for fraudulent charges, they still experience the hassle and anxiety of dealing with fraud and waiting for their case to be resolved. Many don’t how the fraud occurred or who perpetrated it, which can lead them to worry about further fraudulent charges or identity theft.”
To prevent the loss of business from fraudulent card charges, Cardone recommends the following measures:
