Identity Fraud Climbs to an All-Time High as Card Fraud Rises ‘Across the Board’
Specialists in the field of monetary interactions confirmed their predictions that card fraud would reach a new high on Wednesday when a report was released that mentioned that identity theft hit its highest point last year in 2016.
The amount of fraud and identity theft raised 18% compared to 2015, which is an additional one third of the total number of scammed victims in 2015. The only difference between the fraud seen in 2016 is that the fraud was done to credit cards and not the traditional ID theft.
There were a few reasons for why credit card fraud peaked last year. One of these is because only slightly higher than 30% of commercial settlements supported EMV chip cards, which are more secure than the old and traditional cards. Only a few shops executed a procedure called ‘fallback’, where mag-stiped cards are only processed, facilitating the duplication of these plastic cards. Because of this error, fraud rose an astonishing 8%
Another anomaly that was spotted in the reports, was the rising fraud involving the “card-not-present” scam, which increased to 3.4% compared to last year. This growth was only expected to rise up to 3%.
Another type of fraud involving existing cards affected 5% of all card users, an increase from 2015’s 4.5%.
Social media is a very large contributor to all sorts of fraud because of all the information that can be obtained from public profiles. Hackers get access to diverse information from the users such as social security numbers, dates of birth and schools graduated from. They do this just by making insecure posts and waiting for the right people to fall right into their trap.
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