Card Fraud Picked Up Last Year

Checks are still the payments form subject to the most fraud, but cards are catching up, AFP survey shows.

While check fraud declined a bit last year, there was a marked pick-up in fraud involving credit and debit cards, according to the Association for Financial Professionals’ annual survey of payment fraud.

Sixty percent of the almost 450 corporate finance practitioners who responded to the AFP survey said their company experienced fraud or attempted fraud involving payments last year, little changed from 61% in 2012. The portion of companies experiencing attempted or actual payment fraud has fallen in recent years from a peak of 73% in 2009.

Chip-and-Pin to the Rescue

Cards using EMV technology are due to replace the current cards, which use magnetic stripes, in the U.S. by October 2015, and the survey respondents were generally optimistic about that development. Twenty percent expect the switch to EMV cards to result in a major reduction in card fraud, while 72% expect some reduction. Just 8% predicted the new technology will have no effect on the level of fraud.

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