Fraud attacks increased by 45% between 2019 and 2020.


Credit and debit card users are experiencing significant levels of fraud. Eleven percent of consumers reported an incident of fraud in connection with their digital debit and credit card accounts in the last 12 months, according to Authenticating Identities In The Digital Economy, a PYMNTS and Mitek collaboration that surveyed more than 2,255 U.S. consumers.

Both credit card fraud and debit card fraud victims are protected under a separate set of laws.

Credit card: Because credit cards operate on, well, credit, they’re protected by the Fair Credit Billing Act (FCBA). This law essentially ensures that a consumer who reports their credit card as missing or stolen will face no liability for any fraudulent charges thereafter.

Debit card: Because debit cards draw from a bank account, it is the bank that is held responsible for reimbursement. Debit cards fall under the protection of the Electronic Funds Transfer Act (EFTA). This law differs in several ways from the FCBA, most notably in its imposition of a timeline for liability.

Besides credit and debit card fraud, more than 5% of consumers also reported experiencing fraud attacks in five other digital account types: social media platforms (9%), banks (8%), online retail stores (7%), mobile phone networks (6%) and digital wallets (6%).
While the overall percentages of affected consumers may seem low, they should be taken in context — the Federal Trade Commission reported a 45% increase in fraud attacks between 2019 and 2020.


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