Payment Card Fraud Losses Approach $34 Billion

The Nilson Report Releases Annual Fraud Statistics Issue

/EIN News/ -- SANTA BARBARA, Calif., Jan. 06, 2025 (GLOBE NEWSWIRE) -- Payment card fraud losses worldwide reached $33.83 billion in 2023, according to the Nilson Report, the leading trade publication covering the global payment card industry. This marks a small increase in fraud losses worldwide from $33.45 billion worldwide in 2022.

"Worldwide losses to fraud grew by only 1.1% in 2023 compared to the 4.7% growth in spending at merchants and cash obtained from ATMs and other means,” said David Robertson, Publisher of the Nilson Report. “Card industry fraud fighters had a very good year."

Although fraud fighting will continue to improve, The Nilson Report projects that over the next 10 years, card fraud will cumulatively amount to $403.88 billion worldwide. A disproportionate amount will occur in the United States.

The US accounted for 25.29% of card spending and cash volume worldwide in 2023, but totaled 42.32% of losses to fraud globally.

"Criminals from outside the US do business inside the US because American merchants and card issuers are reluctant to impose the strictest fraud fighting technologies," said Robertson.

Fraud losses in the US are mainly attributable to card-not-present (CNP) transactions including ecommerce, the highest risk category in all world regions.

Among payment card industry executives, card fraud losses are expressed in basis points (cents) per $100 in total volume. That figure was 6.58¢ per $100 in total volume worldwide in 2023, down from 6.81¢ per $100 in 2022.

Losses to fraud are incurred by card issuers, merchants, processors of card payments from merchants, and processors of card transactions from ATMs.

ABOUT THE NILSON REPORT
For more than 54 years, the Nilson Report has been the most respected provider of data and news about the payment card industry.

Available worldwide by subscription only, the Nilson Report surveys over 2,000 financial institutions and other payment card businesses to produce statistics about card issuers, card networks, merchant acquirers and technology providers. This business intelligence is not available from any other source. The Nilson Report does not accept advertising of any kind. No company can pay to be featured in the Nilson Report.

For more information about our publication, to start a free trial subscription or to request an interview with David Robertson, contact: Lori Fulmer, lfulmer@nilsonreport.com.
SOURCE: the Nilson Report, www.nilsonreport.com