Request a Call

Credit Card Fraud Statistics

Search
credit card fraud statistics

Credit Card Fraud Statistics

(Updated September 2021) 

Quick Credit Card Theft statistics

  • In 2018, $24.26 Billion was lost due to payment card fraud worldwide
  • The United States leads as the most credit fraud prone country with 38.6% of reported card fraud losses in 2018
  • Credit card fraud increased by 18.4 percent in 2018 and is still climbing
  • Card not present fraud is now 81 percent more likely than point-of-sale fraud
  • In 2018, Identity theft was the 3rd largest cause of fraud in the USA
  • Identity theft makes up 14.8 percent of reported fraud
  • Credit card fraud was ranked #1 type of Identity theft fraud
  • Credit card fraud accounted for 35.4 percent of all identity theft fraud in 2018
  • New account fraud percentage is up 24 percent from account fraud in 2017
  • Take over of existing accounts is down 6 percent compared to 2017
  • Yahoo’s breach in 2013 exposed 3 billion victims and is still the biggest single informational breach
  • The Business Sector accounted for 46 percent of data breaches in 2018, including the Marriott International Breach
  • 69 percent of fraud starts with a consumer being contacted by telephone or email, such as overdue loans or prize scams

It’s probably not news to you that fraud is a huge global and national problem. With the growth of the e-commerce industry and community, we will see credit card fraud rise at rates faster than ever. Here are some important facts about credit card fraud:

  • Losses of $24.26 Billion in 2018 due to payment fraud worldwide.
  • The USA is the global leader as the most credit card fraud prone country with 38.6 percent of reported fraud losses last year in 2018.
  • Credit and debit card fraud continues to climb over time

bar graph showing credit card fraud reports in the US

What Is Credit Card Fraud & How Can It Happen?

Credit card fraud is a result of identity fraud and a type of identity theft. It happens when someone uses your credit card or credit account to make a transaction. What’s the reason for this, and how can it happen?

  • If your credit card becomes misplaced or taken, it can be used for unauthorized in person or online transactions.
  • The account number can also be taken, along with the PIN and security code. Criminals steal your information to make purchases that do not have required authentication.
  • Scammers can use skimmers on point-of-sale systems to get your information and use it to make a duplicate card.
  • Your information can be obtained online through hackers using unsecure or imposter websites & data breaches – then they can use your finance info to make purchases without needing the card present (called card-not-present fraud or CNP fraud).

Types of Credit Card Fraud

Ways that someone can get your information to commit credit card fraud

  • Stolen credit card
  • Finding & Using a card that has been misplaced
  • Account takeover
  • Counterfeit Cards: using a skimmer, thieves and criminals can make & use a duplicate card. EMV Technology (chip & PIN) has reduced this type of fraud
  • Intercepting Mailed Cards: cards taken from your mailbox
  • Fraudulent credit applications: using your taken information to apply for new credit in your name (Identity theft)
  • Card-not-present fraud: the physical card is not needed to commit fraud, just the number- increasing due to e-commerce

Online shopping now creates the greatest fraud opportunity – the security of the EMV credit and debit cards (chip & PIN) are driving more fraudulent activity to the online or e-commerce industry.

Card not present fraud is now 81% more likely than point-of-sale fraud according to Javelin Strategy.

Who Pays For Credit Card Fraud?

Because of federal law & issuer card network terms and policies, consumers are shielded from the cost of unauthorized purchases made with their cards.Financial institutions and merchants assume responsibility for most of the money spent as products of fraud. Issuer losses occur mainly at the point of sale from counterfeit cards, while CNP transactions accounted for most of the total merchant cost.In 2015, issuers bore 72 percent share of losses. Merchants & ATM acquirers assumed 28 percent of liability (Nilson Report, October 2016).

$24.26 Billion was lost in 2018 due to payment card fraud worldwide.

What is Identity Theft?

Identity theft occurs when someone uses information about you: name, birthday, social security number, bank statements, etc. to access your records or open new ones under your name. Credit and debit card fraud is a type of identity theft.

Identity Theft Statistics:

  • In 2018, Identity theft was the 3rd biggest cause of all categories of financial fraud in the USA, just below Imposter Scams and Debt and Loan Collection fraud
  • Identity theft makes up 14.8 percent of consumer fraud complaints with reports of 444,602 reported cases in 2018
  • Credit card fraud was ranked #1 kind of Identity theft fraud – accounting for 35.4 percent of all identity theft fraud in 2018
  • Using identity information, creation of new accounts is up 24% from 2017
  • Take over of existing accounts has decreased 6 percent from 2017

a pie chart displaying the types of identity theft fraud reports in 2018

Credit card fraud is the most common and popular kind of identity theft and makes up 35.4% of all identity theft reports.

What age group reports the most cases of identity theft?

bar graph displaying 2018 reports of identity theft by agebar graph showing the physical impact of identity crime

This study was performed by Identity Theft Resource Center. The published survey results show that over 80 percent of victims affected by identity theft experience sleeping problems as a consequence.

bar graph showing the emotional impact of identity crime

How Does My Identity Get Stolen?

Scammers & thieves can target and acquire your personal information via scams, theft, & information breaches. The criminal can then use your personal information (Birthday, pin number, address) to take over your existing banking accounts or open new accounts and charge it to you and your credit.

Data Breaches

  • Data breaches that result in exposed records has increased by 54 percent year over year in 2019
  • The number of exposed records in those data breaches is up by 52 percent
  • Eight of the 3800 data breaches of 2019 (so far) exposed more than 3.2 billion records. That’s nearly 80 percent of all records exposed so far in 2019.

Top 7 Data Breaches of All Time

Yahoo logo

Yahoo’s data breach in 2013 exposed 3 billion consumers in total and is still the biggest single data breach

first American Financial logo

First American Financial Corp. had 900 Million customer files exposed in May 2019

Facebook Logo

Facebook – 2019- 540 million users’ information exposed from the social media company

Marriott international logo

The biggest breach in 2018 was by Marriott International which exposed as much as 500 Million records

adultfriendfinder logo

Adult Friend Finder in 2016 had 412 Million records compromised

Equifax logo

Equifax in 2017 had 143 Million records exposed

Capital One Logo

Capital One in 2019 had more than 100 Million records which could have been exposed

pie chart showing data breeches by business sector

Other Avenues for Scammers to Get Your Information

Consumers need to be vigilant & wise when giving their personal account information. Scams come from a variety of different services. According to the consumer sentinel network 2018, most of the consumers who were affected by fraud were contacted by scammers via phone or email and that losses of $429 million were incurred due to this kind of phone fraud.

Bar graph showing money lost due to fraud by method of contact

What can you do to protect yourself?

If you have a credit card, understand that this kind of fraud will always be a risk as long as you have a card. However, there are some easy steps you can take to reduce your risk.  There are also some financial services, tools, and programs, available to help limit your risk and aid your search for protection.

Be a smart shopper

Keep your purse or wallet secure and close to you at all times. Never carry your social security card. When shopping or making other online payments, make sure you are using reputable businesses and organizations.

Monitor your credit card accounts

It is wise to monitor your bank statements and statements from your credit card accounts frequently. Often, fraudsters will make small transactions on your account to see if their plan will work – usually something you might not even think twice about. If that works, they usually will go ahead and make bigger purchases. Be on the lookout for suspicious transactions and unauthorized charges, and report it immediately to your credit card issuers.

Increased Fraud with Online Shopping and E-commerce

With increased online shopping, card-not-present fraud is skyrocketing. EMV terminals with chip and pin technology have decreased point-of-sale fraud significantly. But in an online shopping situation, there are no person-to-person transactions.

Card not present fraud is now 81 percent more likely than point-of-sale fraud, and is the biggest source of chargebacks across all industries. Because card-not-present fraud is the biggest source of chargebacks, eCommerce merchants are on track to lose $20 billion in 2021 because of criminal activity.

Other Tips and Tricks

With the emergence of mobile payments, another avenue of fraud has been created. Make sure that no one has the password to access your mobile payments as a precaution.

How to Report Identity Theft

If you’ve noticed unauthorized transactions or someone has used your stolen credit card, you could be the victim of identity theft fraud. The first thing you should do is notify the credit card issuers and your bank. They will usually freeze or close your account and work on changing your account number. Change online passwords and PINS for future fraud prevention.

If you suspect that you are a victim of fraud, you can also request your credit reports, as it is common that new bank records will show up there first. If you check and find one, contact the credit bureau directly to report it.

If you are one of many fraud victims, consider filing a police report to get your money back and catch the criminal. And since fraud and identity theft is a federal legal issue, you can report the crime to the Federal Trade Commission. The Federal Trade Commission tracks identity theft cases.

We know fraud can be a sensitive subject, especially to people who have been victims. We hope that the information that you’ve read throughout this article will help you stay and live safe from becoming a victim of fraud and all other kinds of theft in the future.

Credit card Fraud statistics

downloads and resources

Data Sources

  • experian.com
  • usatoday.com
  • www.cnn.com
  • idtheftcenter.org
  • ftc.gov
  • nilsonreport.com
  • javelinstrategy.com
  • wallethub.com
  • public.tableau.com

Resource Downloads

a collage of the credit card fraud data charts used

Download web optimized versions of our data charts and infographics.

Share this Statistic:

Download a Zero Fee Case Study

Learn more about how Zero Fee Processing has actually put money back in the pockets of a real-life business owner.

Related Posts

coffee shop employee giving good customer service

Customer Service Statistics

Customer Service Statistics (Updated February 2021)  Most businesses who are winning in this day and age make it a priority to give their customers the [...]

Read More
customer making retail return

Retail Returns Statistics

Retail Returns Statistics (Updated February 2021)  Returns are costing retailers more and more each year. The increasing return rate is mostly due to the increase [...]

Read More
student loan debt

Student Loan Debt Statistics

Read More
girl trying to figure out why there's a charge that shouldn't be there

Chargeback Statistics

Chargeback Statistics (Updated September 2021)  Chargebacks are a huge headache for any business. Not only do businesses lose profit and merchandise, they often have to [...]

Read More

Request A Call From A Dual Payments Representative

We know you’ve got questions. You could spend the day reading every word of our website, but you might find answers more quickly by just asking someone from our team. That’s what we’re here for!

Download a Zero Fee Case Study

Learn more about how Zero Fee Processing has actually put money back in the pockets of a real-life business owner.

Don't have time to read it all right now?​

Download your free PDF of “The Complete Guide to Credit Card Processing“. Just give us your email and we’ll send it to you right away!

Example of High Risk Merchants

  • 1-900 Phone companies – If you’re the type of company that charges people to have a chat on the phone, you’ll be considered high risk.
  • Adult Bookstores – Clearly a part of the adult entertainment industry, and an easy mark for the high risk tag.
  • Adult Entertainment – Any business labeled with the “adult” descriptor will automatically be assigned a high risk status.
  • Adult Toys – As “adult” is in the name, it’s an easy target for association with the adult entertainment market.
  • Airline Industry – Due to cancellations on high ticket purchases, this will put your airline company in the high risk category
  • Amazon Stores – By having a high rate of return, Amazon stores are seen as high risk.
  • Ammo Sales – Association with the weapons industry guarantees high risk status.
  • Annual Contracts – Any time an annual contract is involved it can be considered highrisk because most consumers forget they signed up and chance of chargeback can be high.
  • Antiques – With a high average ticket per item, antiques are considered a risky merchant type.
  • Astrology – The study of the celestial bodies and the influence on human affairs can be a chargeback target if customers feel like they aren’t getting the answers they want.
  • Auctions – Because of the nature of bidding on a product and not having a set price the risk level goes up.
  • Autographed Collectables – There is almost always a question as to whether an autograph is authentic, and therefore chargebacks are much higher in this industry.
  • Automotive Brokers – Brokers of automobiles have a very high average ticket are are therefore of higher risk.
  • Bankruptcy Attorneys – Since the people who are working with bankruptcy attorneys are usually in financial trouble, the odds that a payment would be charged back is higher.
  • Betting Services – In many states betting is illegal but for the legal states betting with a credit card has huge chargeback implications.
  • Brokering – When a third party is involved with selling a product the risk level goes up ten fold.
  • Business Loans (Merchant Cash Advances) – Loaning money is always risky, but with business loans and startup lending, high risk is present by the nature of the business.
  • Casino – Just like a betting service, if a customer gambles with their credit card the chargeback rate sky rockets.
  • CBD Products – CBD itself poses high chargebacks because of the legitimacy of the product and the health benefits promised.
  • CBD E commerce – CBD E Commerce has twice the charge back of retail CBD because many consumers don’t feel like the product they receive gives them the benefits promised.
  • Check Cashing (Check Processing) – The level of fraud in check cashing and cash advances is what gives this industry a higher risk consideration.
  • Cigarettes – With higher levels of risk for theft and criminal activity, cigarette sales are deemed high risk.
  • Collection Agencies (Collection Agency) – Many banks see collections as an unsustainable business model that is many times unreliable.
  • Collectible Coins – A higher level of chargeback in this industry gives it a high risk tag.
  • Collectible Currency – Due to the level of inauthentic collectibles, the risk of chargebacks are much higher with collectibles.
  • Copyrighted eBooks – When someone sells something copyrighted without permission many legal issues can arise.
  • Coupon Programs – With many coupon programs the coupons expire and once they expire the consumer wants the money back they spend.
  • Credit Counseling – Due to their clients usually being in financial problems, this industry is fraught with non-payment and fraud.
  • Credit Protection – Most people that need credit protection are bad with money so chargebacks abound.
  • Credit Repair – If a consumer needs credit repair then chances are they are a high risk for chargebacks.
  • Currency Sales – Many businesses that exchange currency do it at incorrect rates hence more chargebacks.
  • Dating Services – Dating is a volatile industry, and is also lumped in with the adult entertainment industry, making it a high risk account.
  • Debt Collection Services – As the collection of debt isn’t always possible, this industry retains the tag of risky.
  • Debt Consolidation Services (Debt Consolidators) – Consolidating debt is a challenging business and as debt is usually the problem, it’s seen as unsecure from a payment perspective.
  • Debt Repair Services – Since the clients of debt repair services are usually having financial challenges, it makes this industry seem a higher risk.
  • Discount Health Programs – Many people don’t feel they are really getting a discount so they try to get their money back and if they don’t the chargebacks sky rocket.
  • Discount Medical Care Programs – Just like the discount health programs if they don’t save the consumer wants their money back.
  • Drug Paraphernalia – Anything that is associated with the drug trade is considered high risk. Offshore merchant accounts are commonly used for this type of business.
  • E Commerce – As the source of the payment is unverifiable at the point of sale, any transaction without the card present has a higher risk of credit card fraud.
  • Ebay Stores – Many people sell items that aren’t as described so chargebacks can be an issue.
  • Electronic cigarettes – much like traditional cigarettes, e-cigarette sales are also deemed high risk.
  • Electronics – This industry has a much higher ticket compared with many other businesses. A chargeback for a $3,000 tv or two and your account can be in jeopardy rather quickly.
  • Escort Services – This is deemed a part of the adult entertainment industry and therefore needs a high risk merchant account and payment solution.
  • Event Ticket Brokers – If a customer buys a ticket and doesn’t use it they feel like they can charge the transaction back.
  • Extended Warranty Companies – Warranties are rarely used so people try to charge back the money that has been spent paying for them.
  • Federal Firearms License Dealers – Any organization associated with guns or firearms is automatically considered in this category.
  • Fantasy Sports Websites – Just like gambling, if a person starts to lose too often they try and charge back the transaction.
  • Finance Brokers – The entire financing industry is risky. By simply extending credit to other individuals, this business is betting that a majority of them will actually pay what they say they will.
  • Financial Advising/Consulting – The high risk tag on financial advisors isn’t about the advisors or their firm. It’s about the clientele and their current circumstances.
  • Financial Loan Modification Services – Due to a clientele in financial struggles, the high risk term is applied to any payments in this industry.
  • Financial Planning – Anything that includes risk for the consumer can have consumer implications with chargebacks.
  • Financial Strategy – Another risk and reward category, if money is lost, consumers try charging back making this a high risk industry.
  • Fortune Tellers – When a person doesn’t hear what they want to hear, or what is told doesn’t happen, the fortune teller can receive huge chargebacks.
  • Furniture Sellers – High risk only when its custom furniture.
  • Gambling – If money is lost the chargebacks rise.
  • Gaming – Chargeback levels skyrocket when consumers don’t win.
  • Get Rich Quick Programs – It’s rather common in this industry for an individual to purchase the training and then chargeback their purchase saying it didn’t deliver on what was promised.
  • Google Stores – With a high rate of return on their items, Google stores are considered high risk.
  • Gun Sales (Firearm Sales) – The gun and projectile industry is automatically associated with high risk credit card processing.
  • High Average Ticket Sales – With any high average ticket, just a couple of chargebacks can mean a massive shift in how risky the account is deemed by the processor.
  • Home/Vacation Rentals – Many issues with chargebacks can take place if the consumer decides not to travel.
  • Horoscopes – Many people believe this is hocum so will chargeback transactions.
  • How To Programs – A common practice in this industry is to purchase the program and charge it back with the description that it didn’t deliver what it promised.
  • Hypnotists – Many merchants will charge back these transactions if results they hoped for were not met.
  • Import/Export Business – Another example of taking goods over country borders which automatically brings in additional risk to any processing account.
  • Indirect Financial Consulting – When using a third party to consult, the high risk status gives the processor fraud protection.
  • International Cargo – Any time you introduce a multi-country element to credit card processing, the ability for fraud to be introduced skyrockets.
  • International Merchants operating in the US – Since the merchant isn’t operating from the United States, there are many unknowns about what is happening on the other side of their business, thus increasing the risk.
  • International Shipping – Transporting goods between countries is risky and introduces all sorts of elements to the financial stability of any transaction.
  • Investment Books – consumers get upset if the investor isn’t right which can lead to chargebacks.
  • Investment Firms – As investments are never a “sure thing” this is considered a risky industry for having a merchant account.
  • Investment Strategy – Anything with future promises can lead to chargeback.
  • Knife Sales – weapons of any kind are automatically given high risk status.
  • Kratom E Commerce – Accepting payments online is high risk, and Kratom is a substance in the health and wellness industry, which is also considered high risk.
  • Life Coaching – With no tangible goods involved in the transaction, life coaching is considered high risk.
  • Lingerie Businesses – Associated with the adult entertainment industry, chargebacks abound.
  • Lotteries – In most states you can buy lottery tickets with a credit card but if you’re allowed to and the ticket is not a winner, consumers try to chargeback the transactions.
  • Magazine Sales – Many magazine sales are recurring subscriptions, which can have issues with chargebacks.
  • Magazine Subscriptions – Same as magazine sales chargebacks can be huge when a recurring subscription happens. (often referred to as recurring billing.)
  • Mail Order Companies – When something is ordered through the mail chargeback risk can go up.
  • Marijuana Dispensaries – As marijuana isn’t a legal substance in every state, this is considered high risk due to the legality of the product. Cannabis credit card processing is available through Shift Processing.
  • Matchmaking Services – Another branch of the dating tree, and often associated with the adult entertainment industry.
  • Medical Devices – If a medical device doesn’t do what’s promised the purchaser may chargeback the transaction.
  • Membership Organizations – This is another instance of where the transactions don’t have any tangible product and are easily charged back to the merchant account.
  • Merchants on the MATCH list – If you are a merchant who has been reported to the MATCH list (Member Alert to Control High Risk Merchants) or the TMF (Terminated Merchant File) you are given high risk status.
  • Merchants with Poor Credit – Merchant accounts are given based on the credit score of the business owner. It’s assumed that the business owner is going to be making the financial decisions for the business, and a poor credit score reflects on the viability of any business transactions.
  • Modeling Agencies – At many agencies models are promised the world and it doesn’t happen. The consumer then wants their money back.
  • Movie Downloads – Transference of a digital product is considered of higher risk. Also, rarely is a physical card present at time of purchase.
  • Multilevel Marketing Sales – Often associated with pyramid schemes, MLM sales are considered a risky business.
  • Music Downloads – Purchasing any digital product is considered to be of higher risk than a physical transaction. Most of the time the card is not present in a digital transaction using a shopping cart.
  • Not A US Citizen Doing Business In The US – It’s possible to get a merchant account without a US social security number, but not having a SSN will increase the risk the processor will have in issuing a merchant account for your business.
  • Online Adult Membership Sites – If you’re running a website that is adult themed and requires payment for access, this is a highly volatile account and definitely high risk.
  • Offshore Corporations (Offshore Merchants) – The international element is what gives the high risk tag when looking for domestic merchant accounts.
  • Online Gambling (Online Gaming) – Without a card being present and gambling as the activity, there are two reasons why this would be on this list. Online payment alone is risky even without the gambling element.
  • Overseas Exporting Services – The introduction of the international element is what gains access to this list.
  • Pawn Shops – There’s a general stigma that goes along with pawn shops, and it’s reflected in their assignment to the high risk processors list.
  • Penny Auction Sites – Even though the customers are usually bidding at only a penny more per bid, users will commonly charge back the transaction when they don’t win.
  • Pepper Spray – Considered a type of weapon, pepper spray vendors are considered risky.
  • Points Programs – Points programs that cost money can cause chargeback issues if points are not used.
  • Pornographic Merchants – If you’re a part of the adult entertainment industry in any way, you’re considered high risk.
  • Precious Metals – Counterfeit metals can be a problem in this industry, making it more risky to accept payments for.
  • Prepaid Calling Cards – Anything prepaid that a consumer may not use increases chargeback issues.
  • Prepaid Debit Cards – When they expire or are lost consumers want their money back.
  • Psychic Services – “Honey, did you visit a psychic? No babe, I don’t remember visiting a psychic.” I’ll just reverse that charge then.
  • Real Estate – A common target for scams and identity theft is how real estate makes this list.
  • Replica Products (Watches, Handbags, Wallets, Sunglasses, Etc…) – As the product being sold isn’t authentic to the original manufacturer, the percentage of requests for refund is much higher than a traditional merchant.
  • Rewards Programs – If rewards are not spent, the consumer wants the money back.
  • Self-Defense – Since the payment provided is for instruction and not a physical product, the self-defense industry makes this list.
  • Self-Hypnosis Services – Yet another instance where the goods being transferred are of a service and not a physical product.
  • SEO Services – With a high rate of request for refund, SEO agencies make this list.
  • Social Networking Sites – Just like a dating site, if a consumer does not get what they want from it, they always like to chargeback.
  • Software Downloads – The software industry makes their way on to this list because of the digital nature of the goods being sold.
  • Sports Forecasting – An example of paying for information and not for a product, and usually not in person where the card would be present for the transaction.
  • Startups – Every startup is considered risky, and the percentage of startups that make it is quite small compared to the number that fail.
  • Student Loans – With the cost of a college education continually on the rise, so is the percentage of loans that default and never receive payment.
  • Strip Clubs – Associated with the adult entertainment industry gains the strip club access to this list.
  • Stun Gun Sales – considered a type of weapon, which makes it a high risk merchant.
  • Supplement Sales – The request for refund in this industry is quite high due to the nature of the product.
  • Sweepstakes – “Hey, I entered a sweepstake and I didn’t win. I’d like my money back please.”
  • Talent Agencies – “I paid thousands of dollars for headshots and glamorous outfits and I haven’t gotten any paid gigs. Pay me back my money please.”
  • Telemarketing Services – Telemarketing services many times do not have the results the purchaser would like to see, so the services are charged back.
  • Telephone Order Sales – Anything ordered over the phone has a increased risk of chargeback.
  • Timeshare Companies – When timeshares aren’t used, people want their money back.
  • Travel Agencies – If trips are not taken, consumers would like their funds returned.
  • Travel Clubs – Many travel club discounts aren’t what they were promised, increasing risk for chargebacks.
  • Vacation Rental Brokers – Third party brokers on prepaid vacation can have issues when customers cancel their trips.
  • Vape Shops – The level of criminal activity and theft is higher with vape shop merchants and therefore carries a high risk label.
  • Vitamin Sales – If the vitamins don’t provide the results the merchant would like to see they chargeback the transactions.
  • Web Designer – Because this service is prone to chargebacks, it has been classified as high risk.
  • Weight Loss – Considered risky because the results aren’t really up to the company, but rather the individual has to stick to the plan to get results, often resulting in chargebacks.
  • Yahoo Stores – Since the goods sold through Yahoo can easily be returned, they are considered a risky merchant.

Turn Your Residuals into Immediate Cash Today

Selling your residuals doesn’t impact your merchants—they’ll keep processing happily. So, if you need extra funds, explore a credit card residual buyout. It’s fast, easy, and a smart move for your financial game plan.