“Emotional Cost” on consumers the biggest fallout of credit card fraud
One in four victims to fraud end up abandoning use of the bank's credit card.
December 31, 2019 / 06:53 PM IST
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A recent research from payments & identity security firm SmartMetric shows profound emotional impacts to the consumer following credit card fraud incidents. 85 percent victims of identity crime felt worried, angry and frustrated, while 83 percent felt violated. Another alarming impact on the fraud victim is that 69 percent said they could not trust others and felt unsafe.
USD 24.26 Billion was lost due to payment card fraud worldwide last year, according to the report. The United States leads the world in credit card fraud with 38.6 percent of reported card fraud losses in 2018.
Credit card fraud increased by 18.4 percent in 2018 and is still increasing.
Apart from the financial cost to card issuers and the time and expense of card fraud to the consumer from credit card fraud there is another serious cost that has had little reporting on. That is the “Emotional Cost” on the consumer victim of credit card fraud, highlighted the report.
Other emotional impacts on fraud victims are, feeling powerless or helpless, 67 percent. Feeling sad or depressed, 59 percent, while 55 percent felt betrayed.
The emotional impact on the victims of fraud support research that shows that one in four credit card users who have fallen victim to card fraud end up abandoning use of the bank's credit card that was used fraudulently even after the card has been reissued.
Other research dealing with the behavioral impact following a card fraud incident and subsequent card replacement by the bank shows that the replaced card is more likely than not to be placed at the back of the wallet and the least used for future purchases by the credit card fraud victim.