Survey: 42% of US cardholders victims of card fraud

A survey from the Aite Group and ACI Worldwide showed that 42 percent of US cardholders have experienced card fraud, compared with 27 percent of cardholders globally.

The United States, indeed, lags behind the rest of the world in card payment security as the two largest card networks control and set payment security standards without the expertise of others, including competing card networks, merchants, consumers and financial institutions, according to a newly formed coalition of retail and payment industry leaders.

“No single industry has all the answers to get us to where we need to be. We must work collaboratively with input from all parties with a stake in the outcome, in order to improve payment security and limit fraud,” said Hugh Gallagher, First Data SVP and Head of STAR Network.

STAR Network, Food Marketing Institute, National Retail Federation, National Association of Convenience Stores, National Grocers Association, and SHAZAM, hence formed the Secure Payments Partnership (SPP).

SPP looks to harnessing new technologies including biometrics, artificial intelligence, geolocation, IP verification, and blockchain, and works on several priority areas including stronger user authentication, open standard setting and adoption, payment security innovation, and network routing competition.

The coalition also believes all parties involved must work together in order to achieve successful payment security, increase transparency, and limit fraud.