Reducing the Impact of New Account and Credit Card Fraud on Financial Institutions
The latest biennial report from the Bureau of Consumer Financial Protection found that the total number of credit card accounts and enrollments in associated online services continue to increase. In fact, more than 75% of U.S. consumers now own credit cards. This trend was especially prominent in 2017, when the number of new card accounts activated came close to pre-recession numbers. In the third quarter alone, U.S. consumers opened 91.6 million new accounts.
Unfortunately – yet unsurprisingly – increased credit card usage has resulted in higher rates of credit card fraud, according to a recent report from the Federal Trade Commission. The report found that in 2017, credit card fraud rates increased by 23% over the previous year. Additionally, credit card fraud topped the list of identity theft complaints received last year. This continues a steady, multiyear rise in credit card fraud, which has been growing in frequency and severity since 2013.