Card fraud worries mounting for US consumers

Over half of US consumers believe that card fraud in the country has increased in the past year, while 42 per cent have personally experienced it, according to a survey by Auriemma Consulting Group (ACG).

Despite the shift from the traditional mag stripe cards to the more secure chip cards, only 32 per cent of Americans believe that the level of card fraud has decreased, while six in 10 respondents claimed that EMV has had no impact. Some 46 per cent of the 500 survey respondents also expect to experience card fraud in the next five years.

Cardholders also expressed a willingness to use stronger authentication methods, with only 38 per cent claiming to have encountered two-step authentication. Some 70 per cent said that they would enable two-step authentication for their online account if it were offered by their primary bank.

Launches of one-click checkout solutions such as Amazon’s 1-Click and PayPal’s OneTouch have only increased security concerns, with two thirds of consumers believing that it will make online shopping more vulnerable to fraud. Jaclyn Holmes, director of the study, commented: “Many cardholders are uneasy with the idea of being permanently logged on. Consumers appreciate the convenience of being able to breeze through online check-out with a single click, but it may be leading some to wonder whether that same convenience could make them a tempting target for fraud.”

The study suggests that the desire from customers to increase security measures is hindering mass acceptance for mobile payments. When asked which they thought was the most secure payment method, 42 per cent of respondents chose chip cards – three times the number that chose mobile.

Marianne Berry, managing director of Payment Insights at ACG, added: “Most early adopters of mobile payments have some understanding of the concept of tokenisation and view it as a very secure way to pay. But in the general population, mobile’s speed and convenience can equate to being less safe.”

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