Study: Card Fraud Soars As Companies Increase Security Efforts

Study: Card Fraud Soars As Companies Increase Security Efforts
Mike Randall
By: Mike Randall
Posted: May 5, 2014 publishes personal finance studies daily to inform users of the latest news and trends in the subprime marketplace.

Nearly two-thirds of companies polled a study say they have increased or plan to increase anti-fraud security measures. Why? Credit and debit card fraud nearly doubled between 2012 and 2013.

The study, conducted by the Association for Financial Professionals, showed 63 percent of the more than 5,000 companies polled have either added or are planning to add new forms of security this year.

Stronger security measures

Of those companies reporting they have made or are making changes, the new security measures include secure signature stamps, electronic stamps and using third-party vendors to better secure payment data.

duncan mallory

Mallory Duncan
National Retail Federation

“The technology that is in the cards out there is 20th-century technology, and we’ve got 21st-century hackers,” said Mallory Duncan, general counsel for the National Retail Federation.

The NRF is calling for new payment card technology that offers added security features. Although everyone seems to agree these new measures would cut fraud, it’s unclear who would pay for them.

Consumers will feel the impact

Ultimately, the cost is likely to be passed along to consumers, but when weighed against the decreased risk that comes with the new technology, many consumers are likely to pay the one-time increase.

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