Banking Exchange Magazine Logo

Credit/debit card fraud increased in 2013

Criminals increasingly sophisticated despite added security protection

Credit/debit card fraud increased in 2013

Despite a slight decrease in corporate payments fraud and a heightened interest in security risks, 2013 saw an increase in fraud specific to credit and debit cards as criminals and their schemes became more sophisticated, according to a survey by the Association for Financial Professionals.

“Criminals will try to stay a step ahead,” says Jim Kaitz, AFP's president and CEO. “But with potential liability increasing for merchants, companies are taking a hard look at where their own vulnerabilities lie. This is especially important for big companies with complex systems, which are frequent targets for fraud.”

Now in its tenth year, the survey, sponsored by J.P. Morgan, found that even as check fraud has declined, companies are now preparing for the shift in credit/debit card liability from issuers to merchants. Among survey respondents, 22% that accept credit/debit cards from their customers anticipate a significant impact from their investment in card acceptance fraud prevention methods, and half expect some impact.

In the wake of recent security breaches, 63% of organizations have either adopted additional security measures or are planning to do so in the near future, with measures ranging from secure signature stamps, electronic signatures, payment data stored with third-party vendors, and increased layers of security.

Key findings:

  • 60% of organizations were exposed to actual or attempted payments fraud in 2013, similar to 61% in 2012, down from 68% in 2011.
  • 70% of companies exposed to actual or attempted fraud in 2013 experienced no financial loss as a result.
  • 80% of companies that experienced actual or attempted payments fraud found it originated outside the organization.
back to top


About Us

Connect With Us


Webinar: Real-Time Payments in the U.S. Market

Time/Date: June 16, 2021 2:00 p.m. ET

The U.S. has come a long way in its journey to real-time payments, with TCH and Zelle in market and FedNow just around the corner. COVID-19 has accelerated that demand to move to real-time. Yet many financial institutions remain unconvinced of the need to move, with less than 3% of financial institutions signed up today.

In this Banking Exchange hosted webinar Celent’s Gareth Lodge, Senior Analyst, Global Payments, and Alacriti’s Mark Ranta, Payments Practice Lead, discuss the findings in the Celent research report, Real-Time Payments in the US Market: Speeding Up or Slowing Down? A Call to Arms.


This webinar is brought to you by:
Alacriti logo