A study by ACI Worldwide and Aite spanning 6100 customers and 20 nations revealed that in the last five years nearly 25% of the cardholders had suffered card fraud.
The survey disclosed that in 2013, rising online crime resulted in 1367 data breaches, unsettling customer confidence in banks.
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According to the review, UAE stood first with the highest fraud rate at 44%. Second was China at 42%, with the US and India showing up third in the standings at 41%.
The resulting fraud rise seems to have undermined customer trust in banks. One out of four cardholders changed banks after falling victim to fraud. About two-thirds said that they would reduce their card usage to try and avoid more such incidents.
In this regard, senior analyst of Aite Group, Shirley Inscoe says: "Consumers lack confidence in their bank’s ability to protect them from fraud, so banks must remain vigilant in their fraud migration efforts or face increased customer attrition."
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