What are the statistics on credit card fraud?
The credit card industry typically uses the following measure of fraud: • Net fraud losses as a percent of total volume • Expressed differently it is X cents of fraud per $100 in total credit card volume This figure has dropped from roughly 16 basis points or 16 cents per $100 in total volume in 1992 to about 7 basis points or 7 cents per $100 in total volume in 2006. This trend, however, reflects a rise from a low of about 5 basis points in 2004. Don’t kid yourself into thinking fraud losses are insignificant, though. They are huge, representing $0.99 billion in net fraud losses from bankcards alone in 2006. These statistics are taken from the Nilson Report, which is the leading publication for this industry. (http://www.nilsonreport.com/ will enable you to subscribe; subscriptions are dear, so you may choose to do so only for business purposes). You asked how many people are affected each year, or each month, or
