Credit Card Fraud on The Rise in US
Credit card fraud seems to be escalating to gargantuan proportions with Discover, American Express, MasterCard and Visa reporting a rather worrying 9.3% increase from 2005 to 2006. The Nilson Report compiled the figures and confirm that the data doesn’t include debit cards.
According to Creditbloggers there could be a few reasons for this spike:
“There could be several factors at work. The increased use of credit cards has certainly contributed. Also the growth of credit card fraud that involves fast-moving international crime rings. Consumer awareness about fraud and enthusiasm for reporting it could have contributed as well.
Another significant factor is the credit card issuer’s general policy of accepting credit card fraud losses as a cost of doing business. Translated: They don’t care about fraud losses.”
I would put a far simpler explanation to this phenomenon and that’s quite simply declining economic circumstances.
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