While not widely discussed, CNP credit and debit card fraud creates cardholder anxiety and negatively affects consumers’ online shopping behaviors, much to the detriment of FIs and e-commerce merchants.
A new study from Tender Armor, in partnership with Sparks Research, also found 78% of online shoppers want more protection for their payment card data when shopping online.
Additionally, the study, titled CNP FRAUD CONSUMER IMPACT: ANXIETY THAT REDUCES CREDIT AND DEBIT CARD USAGE, found that 56% of cardholders decrease online shopping, reduce payment card usage, and close payment card accounts after facing a fraudulent event. FIs and merchants need to act now, introducing new CNP fraud prevention methods that diminish rising losses and costs while alleviating cardholder angst.
Keeping credit and debit cardholders safe while shopping online is vital. FIs, merchants, and online shoppers all suffer from CNP fraud consequences. The aftermath is evident with 15% of consumers closing their credit or debit card accounts, 12% of consumers using the replacement card less, and 3% of consumers not using the replacement card at all. In addition, 14% of consumers changed where they shopped online and 12% shopped online less often.
Industry providers will benefit from introducing new fraud prevention methods that do just that. It is paramount that fraud prevention solutions promote consumer trust and confidence that the consumer’s payment card data will be kept safe while shopping online.
CvvPlus is a new technology preventing fraud on payment cards. The product is offered by Tender Armor, based in Fort Lauderdale.
For a complete archive of more than 60,000 articles published since 1995 search the CardFlash.com library.