All you need to know about Cost Audits... and much more!
Jim Colip of IBPS on with you ---
Thursday, Jun 9, 2016 5:00 PM PDT
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From DW Co-Founder John Daniels:
"Please make sure that All the information that we have received about fraud is part of our presentation to those merchants who do not have up to
date emv equipment. Many do not understand they they will be paying a lot of
money over the next year in fraud losses."
With Credit
Cards Accounting For 71% of Losses, Study Authors Anticipate a Rush of
Counterfeit Card Fraud as Mag Stripe Window Closes and EMV Takes Hold
U.S. card issuers lose $10.9 billion each year to card fraud,
according to research released Tuesday by LexisNexis Risk Solutions.
Credit
cards account for $7.6 billion (71%) of overall losses
to card fraud; debit accounts, $2.7 billion (25%) and prepaid cards, $500
million. LexisNexis collaborated with Javelin Strategy and Research on the
online survey of 100 risk and fraud decision-makers and influencers working at U.S. card
issuers.
EMV chip
technology is the strongest defense against fraud at the point of sale, Michael
C. Smith, director of fraud market planning and author of the study, said in a
June 6 news release. But as the U.S.
payments industry continues to roll out EMV security, issuers are expecting an
increase in certain types of fraud that EMV does not protect.
"With
the window closing on easily replicable magstripe cards, we forecast a shift
and bump in identity schemes —characterized by the use of synthetic identities
and the misuse of true identities," he said in the release.
Application
fraud – when someone opens an account using fake or stolen documents in another
person’s name – and account takeover – usually the result of phishing, spyware
or malware scams – represent the two most harmful types of fraud, each of which
represents 20% of total fraud losses. Counterfeit card fraud represents 16% of
losses and card-not-present fraud is expected to increase with or without EMV
in place.
The
misuse of payment cards that are lost or stolen (28% of fraud losses) and
nonreceipt fraud (15%) – when the card is intercepted in the mail before the
legitimate cardholder receives it – represent the biggest challenges to issuers’
ability to distinguish fraud committed by the cardholder and a fraudster,
according to the study. Since EMV protects against counterfeit fraud, stolen
and nonreceipt card fraud are unaffected by its protections
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Excellent webinar with DW Top Agent Rick Andersen! If you missed it, BE SURE to catch the recorded version as soon as it's posted. You will want guests to hear it, too! Rick makes a clear and compelling case for building a DW biz based on his decades as a successful 'traditional' businessman.
Thanks, Rick!
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More on Fraud:
Best
and Worst States regarding Credit Card Frauds Complaints reported by US
Costumers per 100,000 Inhabitants
States with
Highest Credit Card Frauds Complains
|
%
|
|
States with
Lowest Credit Card Frauds Complains
|
%
|
District of Columbia
|
50.69%
|
|
North Dakota
|
5.94%
|
Nevada
|
36.02%
|
|
Wyoming
|
7.01%
|
California
|
34.75%
|
|
Vermont
|
7.03%
|
New York
|
30.97%
|
|
Iowa
|
7.12%
|
New Jersey
|
30.83%
|
|
Mississippi
|
7.42%
|
Source: Consumer Sentinel
Network, Annual Reports
From wiki:
Although incidence of credit card fraud is limited to about 0.1% of all
card transactions, this has resulted in huge financial losses as the
fraudulent transactions have been large value transactions. In 1999, out
of 12 billion transactions made annually, approximately 10 million—or
one out of every 1200 transactions—turned out to be fraudulent.[3]
Also, 0.04% (4 out of every 10,000) of all monthly active accounts were
fraudulent. Even with tremendous volume and value increase in credit
card transactions since then, these proportions have stayed the same or
have decreased due to sophisticated fraud detection and prevention
systems. Today's fraud detection systems are designed to prevent one
twelfth of one percent of all transactions processed which still
translates into billions of dollars in losses.[3]
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