Card Fraud Down Thanks to EMV
Visa announced that:
"Counterfeit fraud volume decreased 66% at chip-enabled merchants in June 2017 compared to June 2015. U.S. financial institutions have issued 462 million chip cards to consumers, and 2.5 million, or 55% of U.S. storefronts, accept chip cards."
Funny, Visa didn't mention what the fraud trend was for the other 45% of merchants. And why did Visa report just June 2017 versus June 2015, and not year-to-date June 2017 versus YTD June 2015? Was there a nice downward blip in June that wasn't there the prior five months?
Visa also neglected to mention the recent findings of the Federal Reserve's Payments Study Supplement which found that between 2015 and 2016, the number of in-person credit card payments grew 8%, while remote payments (where the chip doesn't matter) rose by 17%. On the debit side, the number of in-person payments increased by 5% versus 15% for remote payments.
None of this really seems to matter to bank and credit union executives. In Cornerstone Advisors' upcoming 2018 What's Going On in Banking study of bank and credit union CEOs, we found that cybersecurity issues are among their top three concerns (along with customer/member growth and cost management), and that addressing fraud and information security is, far and away, the top financial and risk management priority.
Director of Research