European countries experience less card fraud than nations in the Americas, mainly due to earlier adoption of EMV and other security advances, according to a new study.

A survey by payments processor, ACI Worldwide, and market research company, Aite Group, found that 29% of UK consumers experienced card fraud in 2015, while the figures for Mexico, Brazil and the US were 56%, 49% and 47% respectively. Some 27% of Italian consumers and 18% of German consumers experienced this crime during the year, but it was Sweden, the Netherlands and Hungary that experienced the lowest percentage of card fraud.

The US is the only country to remain in the top three list in 2014 and 2015, with ACI and Aite suggesting this was due in part to being a laggard in the roll-out of EMV chip cards, meaning skimming and data breaches continue to be security challenges.

The report, entitled Global Consumers: Losing Confidence in the Battle Against Fraud, found that nearly 30% of global consumers have experienced card fraud in the past five years. Card fraud is classified as unauthorised activity on either debit, credit or prepaid payment card, and 17% of respondents experienced more than one incident of fraud, compared to 13% in 2014.

ACI's online quantitative market research, which was conducted in the second quarter of 2016, surveyed 6,159 consumers across 20 countries. Participating nations were Brazil, Canada, Mexico, the US, France, Germany, Italy, the Netherlands, South Africa, Sweden, the United Arab Emirates, the UK, Australia, India, Indonesia, New Zealand, and Singapore.

Andreas Suma, global lead for fraud & data at ACI Worldwide, commented: "Our latest report shows that card fraud remains an issue of deep concern for consumers worldwide.

"As fraudsters are getting more organised it is fair to say that at this point in time, the assumption should be made that almost all users' credentials and card information has been compromised. It is also no surprise that there is a direct correlation between fraud rates and consumer trust and loyalty."

The reports also revealed that risky consumer behaviour is still widespread despite years of education by financial institutions and card issuers. For example, 54% of global consumers exhibit at least one risky behaviour, such as keeping their PIN with the card - which puts them at higher risk of financial fraud.

Ben Knieff, senior research analyst at Aite Group, remarked: "The data demonstrates that while consumer trust is improving, financial institutions must be proactive in their efforts to prevent card fraud in order to retain customers.

"Consumer education and customer service remain a challenge for financial institutions, as risky behaviour has a direct correlation to experiencing fraud."

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ACI Worldwide 

Aite Group