The Cost of Fraud

By LexisNexis Risk Solutions, Special for  USDR

Today LexisNexis® Risk Solutions released a comprehensive card issuer fraud study,Issuers Confront Application Fraud and Account Takeover in a Post-EMV U.S., that assigns a dollar value to direct losses from card fraud. It also details current modes of fraud and the effects these have on credit, debit, and prepaid card issuers’ ability to mitigate card fraud. The study reports that issuers experience $10.9 billion in direct annual losses to card fraud overall. However, this value is a moving target—the opportunities for fraud become ever more abundant as new services and products, including mobile wallets and digital channels make the payment card ecosystem ever more complex. Finally, the study also looks at ways to manage different types of fraud and account takeovers in today’s dynamic post U.S. EMV rollout  environment.