Plastic card fraud continues to be a growing problem for credit unions and other financial institutions.
The Federal Reserve Board reported a 44% rise in fraud losses across all debit and general-use card transactions from 2013 to 2015—putting the current total at $2.41 billion.
The Nilson Report predicts plastic card fraud will reach $31.67 billion worldwide by 2020.
Unfortunately, plastic card fraud will continue to climb as delays in shifting fraud liability to the retailer compound the problem.
Two recent changes that will affect card fraud:
• Gas station adoption of chip-embedded EMV (Europay, MasterCard, Visa) cards is now pushed back to 2020 instead of the original 2017; and
• For non-EMV merchants, issuers will no longer be allowed chargebacks for purchases under $25 and can now charge back only 10 fraudulent counterfeit transactions per account.
While these changes certainly indicate a continued uphill battle against card fraud, you can take steps to lower your credit union’s risk. Here are four:continue reading »