The user consortium for FICO’s Falcon Fraud Manager has produced data that indicates a continuing global shift toward card-not-present fraud and away from counterfeit and other card-present fraud types. FICO’s data indicates that, from January 2010 to September 2011, CNP fraud expanded at double the rate of counterfiet fraud. FICO also states that fraudsters are increasingly targeting debit cards for compromise through skimming schemes.
“Continued improvements in fraud controls have succeeded in keeping the fraud genie in the bottle; but fraud fraudsters continue to evolve their attempts to circumvent our efforts, adapting to consumer behavior and simply following the money,” said Doug Clare, vice president of Product Management at FICO. “More online shopping has created a shift towards more online fraud, which is proving to be a popular, relatively safe and anonymous means for fraudsters to exploit any weakness in fraud systems. Consumers and issuers should remain diligent when using cards for point of sale and ATM transactions.”
Clare continued, “It’s worth noting that in the period that we studied, only about 1 percent of debit and credit cards were affected by fraud, which speaks to the strength of FICO Falcon Fraud Manager, which protects more than 2.5 billion payment cards worldwide. By historical standards, losses remain low.”
Click here to read more from FICO.