With all the stress associated with the transition to EMV, we occasionally lose sight of the underlying reason for the change: the United States is the last bastion for credit card counterfeiters in the world. According to CBS News:
“America is now the favorite haunt of credit-card fraudsters, with a report from Barclays finding that 47 percent of all global card fraud affects cards issued to U.S. residents, even though the U.S. only represents 24 percent of card volume, according to Quartz.”
If results in other countries are any indication, the rollout of EMV in the U.S. should have a dramatic positive effect on card fraud:
“The U.K., which began adopting the new type of cards over a decade ago, has seen a 70 percent reduction in counterfeit fraud since then”
However, with a current EMV adoption rate of less than 10% in the U.S., those benefits could be a ways off. In the meantime:
“American consumers need to be diligent about checking their card statements and calling their banks if they notice unusual activity. About 90 percent of consumers fail to check their statements, or give them only a quick glance.”
Overview by Alex Johnson, Sr. Analyst, Credit Advisory Service at Mercator Advisory Group
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