On-line financial news outlet, Finextra analyzed data from a recent survey of consumers in the UK and found that 10% or about 5 million individuals experienced payment fraud that caused them to close a card account last year:
In a survey of 2,000 adults, comparethemarket.com found that not only are accounts being hacked, but significant amounts of money are also being successfully stolen in many cases. Of the 37% of people who had money stolen from their accounts, £544 was taken on average. Based on these findings, comparethemarket.com estimates that over £1 billion has been stolen as a direct result of credit or debit card fraud in the last year.
Despite the fact that losses are climbing, few consumers are apparently blaming their financial institution for the event and are keeping their accounts with the same provider:
Despite having a lot of money stolen from their accounts, only 12% of people who were hacked in the last 12 months have changed their debit or credit card provider, whilst over two thirds (68%) have not considered, or have no intention of changing accounts.
Perhaps since few consumers will experience a financial loss themselves due to the consumer protections in place, (just the inconvenience of having to clean up the dispute), they aren’t finding fault with their financial institution.
The U.K. regulators are about to extend further consumer protections that will require banks to cover the expense of payments that unsuspecting consumers make to bad actors conning them out of their savings:
Public bodies are taking steps to address the rising levels of online fraud, with the Payment Systems Regulator recently announcing plans to reimburse those scammed into transferring money into fraudulent bank accounts. Consumers however remain dissatisfied, with over half (51%) of people hacked in the last year agreeing that the government is not doing enough to protect consumers from cybercrime.
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group
