Credit Card Fraud Statistics and Facts
In the end of 2005, MasterCard and Visa generated a sales volume of more than $190.6 billion, from the circulation of approximately 56.4 million credit cards across Canada. Credit card fraud statistics show that about $2.8 million was lost due to credit card fraud, from fraudulent use of MasterCard and Visa alone. In total, credit card fraud costs cardholders and credit card issuers as much as $500 million a year.
Who pays for the loss? Everyone. Even if you haven’t been defrauded yourself, the cost of goods and services increases to pay off the credit and charge card frauds.
Credit Card Fraud and Technology
Transactions completed with credit cards seem to become more and more popular with the introduction of online shopping and banking. Correspondingly, the number of credit card frauds has also increased with the introduction of newer technology. From embossers to encoders to decoders, credit card counterfeiters are now using the latest technology to read, change, and implant magnetic information on counterfeit credit cards.
What Are Counterfeiters Doing with the Cards?
Counterfeiters mainly use fake identities to receive government assistance, unemployment insurance benefits, personal loans, and to scheme corporations and individuals. Counterfeit credit card is the most common type of credit card fraud and is responsible for 37% of the millions lost yearly by credit fraud in Canada.
Types of Credit Card Fraud
Credit fraud can fall into one of five categories:
- Counterfeit credit card
- Lost or Stolen Cards
- No-Card Fraud
- Non-Receipt Fraud
- Identity Theft Fraud
The percentage that each type of credit card fraud represents is described below:
Source: Royal Canadian Mounted Police