In 2015, total card fraud taken globally reached $21.84, which is almost 21% higher than the numbers registered in 2014. This is according to The Nilson Report, the most respected newsletter covering the payment systems industry. The US losses associated with global card fraud made up 39% or $8.45 billion; spending volume accounted for only 23%. Global losses are expected to grow through 2019, reaching $32.8 billion before the year 2020.
Given global spending volume accounted for over $31 trillion, fraud made up almost 7 cents per $100 spent in 2015, which is higher from 6.21 cents per $100 spent in 2014. Fraud accounted for nearly 12 cents per every $100 of volume in the US. Taken as a percent of volume, fraud is expected to reach 7.3 cents per every $100 spent in 2018. Then, it will account for 6.5 cents per every $100 spent in 2020.
According to the Nilson Report, losses can be classified based on issuers, and merchants and acquirers. Losses experienced by issuers made up 72% of global fraud loss, which was mainly the result of fraudulent debit and credit card transactions at the point of sale and ATMs. Losses experienced by merchants and acquirers made up 28% of global fraud loss and came mainly from eCommerce.
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Based on the Nilson Report analysis, fraud losses experienced by merchants and acquirers were mostly the result of card-not-present or CNP transactions. Unfortunately, the problem goes on growing. In 2015, losses to card-not-present fraud were more than $5.65 billion. The problem worsened in almost every country. In the US, fraud losses associated with card-not-present transactions already make up over 50% of total losses brought about by fraud.