The United State accounts for 47 percent of global credit and debit Card fraud regardless of the fact that it generates just 27 percent of the whole quantity of purchases and cash, according to a recent report. Unfortunately, small companies often bear the brunt of credit card fraud from both external and internal dangers. The Current Nilsson Report a respected source of international news and Analysis of this credit or debit or prepaid card business also shows that payment card fraud losses totalled 3.56 billion last year in the U.S. from all sources including general purpose, private label, and signature and PIN charge cards.
According to David Robertson, publisher of this report, there are two Reasons the U.S. has a disproportionate percentage of the worldwide total losses. U.S. banks have been slow to embrace newer technologies like EMV chip cards, and they are reluctant to decline card authorization from retailers since they do not want to alienate their cardholder, he explains.
Robertson expounded on the latter point by explaining that contest One of U.S. card issuers has gotten to a stage that the average cardholder has four cards in their pocket, so if an issuer declines an authorization the client can only pull out a competitor’s card to complete the transaction.
For smaller companies, fraud is a very real issue. Identity and data Thieves often target this group of retailers because they perceive them to be less vigilant than larger businesses when it comes to preventing data breaches. Usually, small businesses lack stringent internal controls, so that they may miss warning signs that fraud is happening, particularly when it is committed by employees. If the breach involves card fraud or identity theft, the consequences for the company can be dire.
In its 2010 Report to the Nations on Occupational Fraud and Abuse, the Association of Fraud Examiners reported that the prtship carding normal organization loses five percent of its annual revenues to fraud, which frauds can endure for a median of 18 months before being discovered. All businesses and smaller companies in particular need to be alert to possible fraud situations. By way of instance, data breaches involving credit card processing can be prevented by attaining and maintaining PCI compliance. This means meeting the Payment Card Industry Data Security Standards PCI DSS created by the five significant payment card brands. PCI DSS is a set of requirements established to make certain that all retailers who process, store or transmit credit card info maintain a secure transaction environment.
Data breach and credit card fraud are issues of concern to all Companies, the credit card processors who serve them, issuing banks and credit card networks. Although there is not any law requiring PCI compliance, retailers who do not comply and endure a data breach might end up paying dearly in the form of penalties, expensive audits and card replacement costs. Worse yet, they could undergo crippling if not fatal damage to their business and personal reputations.