"This study confirms that card fraud remains an issue of deep concern for consumers around the globe," Andreas Suma, vice president and global lead, fraud and data for ACI Worldwide, said. "It's no surprise that there is a direct correlation between fraud and lower consumer trust and card loyalty, including a primary contributor toward back of wallet behavior. And as this data illustrates, it's more critical than ever for financial institutions to implement and actively maintain effective fraud prevention solutions that address fraud, security and customer experience needs."

The study suggested risky behaviors, such as leaving a smartphone unlocked when not in use, have a direct correlation to fraud, and the overall risk for fraud is rising due to the global increase in smartphone and tablet usage.

Fourteen out of the 17 countries surveyed both years reported an increase in card fraud between 2014 and 2016.

Join us in Dallas at the new Credit Union Times Fraud: Don't Let It Happen To Your Credit Union Conference, where you will find the latest tools and techniques for preventing fraud and data breaches; strategies for responding in the immediate aftermath and best practices for restoring reputation, financial stability and information security. This two-day conference is designed for credit union executives, board of directors and those responsible for your credit unions cyber security policy.    Register to attend and save $150.

In 2016, Mexico at 56%, Brazil at 49% and the U.S. at 47% top the list of countries experiencing the most card fraud. The U.S., according to the study, is the only country to remain on the top three list both years, due in part to the slow rollout of EMV chip cards. In addition, skimming and data breaches continue to be security challenges in the U.S. European countries experience less card fraud than countries in the Americas due to earlier adoption of EMV and other security advancements.

The report also found 54% of consumers globally exhibited at least one risky type of behavior, such as keeping a PIN with their card, which puts them at higher risk of financial fraud, compared to 50% in 2014. Consumers in Brazil exhibited the riskiest behaviors among countries in the Americas: 27% of consumers left their smartphones unlocked when not in use, compared with 29% in Spain and 36% in Thailand

The study disclosed that consumer trust is improving, but loyalty continues to lag. Additional findings included the following:

• Forty percent of consumers who received replacement cards because of a data breach or fraudulent activity used their replacement card less than they used their original card, resulting in lost interchange and interest revenue from decreased usage. This back of wallet behavior was especially prevalent in Asia-Pacific countries: 69% of consumers in Indonesia opted to use cash or an alternative payment method over a credit or debit card following the card fraud incident.
• Fourteen percent of consumers globally lacked confidence that their financial institution can protect them against fraud, an improvement from nearly 20% in 2014.
• One out of every five consumers changed financial institutions due to dissatisfaction after experiencing fraud.
• 17% of debit and credit card holders cited having experienced fraud multiple times during the past five years, compared to 13% in 2014.

"Card fraud rates are on the rise in the majority of countries included in the survey," Aite Group Senior Research Analyst Ben Knieff said. "The data shows that consumer education and customer service remain a challenge for financial institutions globally, as risky behavior has a direct correlation to experiencing fraud."  

In the last few weeks, Las Vegas' Hard Rock Hotel & Casino announced its second breach in about a year. The culprit: Card-scraping malware on its point-of-sale system from Oct. 27, 2015 to March 21, 2016. The Dublin, Ohio-based, fast food chain Wendy's also confirmed that hackers breached customer payment-card data at 1,025 of its restaurants nationwide dating back to the fall 2015.

Join us in Dallas at the new Credit Union Times Fraud: Don't Let It Happen To Your Credit Union Conference, where you will find the latest tools and techniques for preventing fraud and data breaches; strategies for responding in the immediate aftermath and best practices for restoring reputation, financial stability and information security. This two-day conference is designed for credit union executives, board of directors and those responsible for your credit unions cyber security policy.    Register to attend and save $150.