Credit Card Fraud Statistics That’ll Make You Check Your Wallet Twice

There are many types of credit card fraud around; in fact, the sheer scale of it might surprise you. While it shouldn’t make you feel unduly unsafe whenever you shop online or use your card in an ATM, it’s important to always be aware of the ‘what ifs.’ After all, you don’t want to hand over control to a fraudster, do you?

Let’s highlight the problem before we go any further – In 2023 alone, fraud losses hit $34 billion globally. There’s more – it’s projected that over the next ten years, global card fraud losses could hit as much as $403.88 billion, with most of it affecting the US. 

Current credit card fraud statistics are unprecedented and mindblowing. It’s also quite terrifying. In fact, in 2024, a staggering 449,032 people experienced credit card fraud when a card was opened using their information. While we should certainly be vigilant, it’s not all bad news. There are ways you can protect yourself and your business. Let’s dig deeper into the staggering world of credit card fraud facts and learn what you can do to avoid it happening to you.

TL;DR

• Credit or debit card fraud losses hit $33.83 billion globally in 2023, up by 1.1% from 2022. 
• Card-not-present fraud dominates, with 73% of all losses recorded in 2023. 
• For every $1 of fraud, merchants lose up to $3.75 when all fees are taken into account. 
• AI-powered detection systems are highly effective compared to traditional methods, with an accuracy rate of 95%. 
• High-risk industries face fraud rates much times higher than traditional retail merchants. 
• In 2023, adults aged 30-39 experienced 21% of all fraud claims, while those aged 60 and over experienced 24.1% of fraud claims. 
• PayCompass can help you protect your business through a range of built-in merchant account tools and innovations. 

The Shocking Reality of Credit Card Fraud Today

We’ve introduced you to what we can easily call the shocking reality of today’s credit card fraud statistics. They don’t make for easy or pleasant reading, that’s for sure. 

You might ask, how often does credit card fraud happen? Well, often – to put it simply. According to the FTC’s annual report and quarterly statistics, there was a 7.8% increase in credit card fraud complaints between 2023 to 2024. 

Let’s dig deeper and learn more about the credit card fraud rate that seems to increase year on year.  

Numbers That’ll Keep You Up at Night

If you look closely at credit card fraud statistics, you might wonder why anyone risks using a card. Cards are the most convenient way to pay. But with convenience comes loopholes and that’s where fraudsters find their opportunities. Of course, learning about credit card theft statistics and the like isn’t designed to scare you. Yet, it’s important to understand the full scale of the problem, so you can protect yourself and your business moving forward. 

At PayCompass, we understand how worrying the possibility of credit card fraud can be. You’ve worked hard to build your business; the last thing you want is a nefarious individual coming along and stealing your hard-earned gains. That’s why all of our merchant accounts come with built-in fraud protection. We also offer real-time monitoring, so you can spot any potential problems before they turn into major headaches. 

The $33.83 Billion Problem

We’ve already mentioned that global credit card fraud totaled $33.83 billion in 2023, and the numbers just keep on rising. Yet, even as huge as that number is, it doesn’t really tell the whole story of the scale of fraud in general. Digging deeper into the methods used, the types of fraud, and their effects, gives a much deeper picture, and a real impetus to add an extra layer of protection for your business. 

Your Odds of Getting Hit

Here’s something you probably don’t want to hear – around 65% of cardholders will fall foul to fraud once in their lifetime at least. In fact, 44% already have. If you’ve already experienced fraud, you’ll know it’s not pleasant at all. Even the smallest lost amount leaves an extremely bad taste in your mouth, but imagine if it’s a large amount? 

Of course, these credit card fraud statistics highlight that it’s not something that happens to other people. It can happen to anyone – including you. 

Breaking Down Fraud by the Numbers

There are different types of fraud, including card-not-present, card-present, phishing, card takeover, and application fraud, and friendly fraud. 

The latter is more troublesome than many people think. Because friendly fraud sounds far less worrying than other types, many people overlook it, yet it’s extremely costly. In fact, studies have shown that US businesses alone lose around $100 billion every year. 

So, what is friendly fraud? It means that customers dispute a legitimate charge, perhaps saying that they never received an item when they did. Because it’s not done by a stranger hiding behind a computer, it doesn’t get the same bad reputation as other types of fraud, but it’s still extremely damaging. 

Who Gets Targeted and Where

You might think that fraud can hit anyone, at any time, and yes, that’s true. Yet, there are certain demographics that seem to have it harder than others. This often comes down to things like payment infrastructure, customer behavior patterns, economic conditions, and also regulatory issues. 

Remember, at PayCompass, we don’t focus on demographics when it comes to fraud prevention. We have the tools and high-risk merchant accounts ready to help you manage your risk profile and reduce costly chargebacks that often come as a result. 

America’s Outsized Fraud Problem

The US gets hit hard by credit card fraud, at 42.32% of all global losses, despite the fact it only handles 25.29% of card spending worldwide. Europe has it a little easier, with lower fraud rates. However, this is likely to be due to a stronger adoption of fraud protection measures, such as EMV chips and stronger regulations. 

The Age Factor in Fraud Risk

We can also talk about age groups that are targeted most likely. Those in the 30-39 age group experienced 21% of all fraud claims in 2023. On the other hand, those aged 60 and over experienced 24.1% of fraud claims.

The table below sheds even more light on these interesting yet worrying credit card fraud rates. 

Age Group	Fraud Rate (per 1,000)	Median Loss Amount	Likelihood of Financial Loss
20-29	38	$338	44%
30-39	44	$378	42%
40-49	41	$400	38%
50-59	35	$500	32%
60-69	28	$597	28%
70+	18	$1,900	24%

Money Attracts Money (and Fraudsters)

Unsurprisingly, higher-income homes are more likely to be hit by fraud. This is due to them using their cards more, and having higher credit card limits. In fact, households with an income of $75,000 or more are far more likely to get a credit card fraud alert, or a debit card alert, compared to households in lower income brackets.

It’s easy to see why; people with higher incomes have quite complicated finances, usually with several credit and debit cards. They might also shop online more, and have business expenses that fraudsters love to target. The more they use their cards, the easier it is for fraud to slip by without anyone noticing. Of course, that’s where real-time transaction monitoring comes in very useful, something that we offer at PayCompass as part of all our merchant accounts.  

How Fast We Catch the Bad Guys

So, we know that fraud is quite common, the credit card fraud statistics show it very clearly. But what else matters here? Well, it’s also about how quickly fraud can be identified and dealt with, so it doesn’t become a bigger problem than it already is. 

Speed Matters in Fraud Detection

Advanced fraud detection systems have become extremely sophisticated and now have high success rates. In fact, AI-powered systems have an accuracy rate of 95%, cutting down on false positives. These systems are fast, analyzing countless data points within the blink of an eye. Of course, it’s impossible for humans to do this, so these systems have helped us come a long way in catching the bad guys who prefer fraud over honesty.  

Speed is the key here, because every single second counts when a fraudster is attempting to drain your bank account. If you can catch a fraudulent practice in less than a minute, you have a great chance at limiting the damage and preventing huge losses. 

Where and How Fraudsters Strike Most Often

In honesty, fraudsters don’t really mind who they target as long as they get something out of it. Yet, there are some particular areas where these nefarious types like to lurk. Their strategies also vary, and they’re becoming more sophisticated as time goes on. In fact, the table below gives some eye-opening information about the different types of fraud and how common they are. 

Fraud Type	Annual Loss (Billions)	Percentage of Total Fraud	Average Loss Per Incident	Detection Time
Card-Not-Present	$20.97	73.4%	$1,259	3-7 days
Card-Present	$4.12	14.4%	$847	1-3 days
Account Takeover	$2.01	7.0%	$1,813	7-14 days
Skimming	$1.20	4.2%	$439	1-5 days
Identity Theft	$0.28	1.0%	$2,156	14-30 days

The Online Fraud Explosion

It’s unsurprising that card not present fraud statistics are a lot higher than instances when the card is present. Here, we’re talking about online purchases predominantly, and these are a fraudster’s bread and butter. 

In 2023, card-not-present fraud was responsible for 73% of all losses. On the other hand, card present fraud statistics are lower, with only 15% of all fraud coming from face to face transactions in 2019.

E-commerce: A Fraudster’s Paradise

We know that online shopping is one of the most common areas for fraud, i.e., when the card isn’t physically present. Yet, what might surprise you is that for every $1 of fraud, merchants lose anything up to $3.75. That’s because chargeback fees and other administrative costs cause a much bigger problem. 

The good news is that at PayCompass, we offer chargeback prevention as part of all our merchant accounts. We know just how costly chargebacks can be, whether they’re down to friendly fraud or something else entirely. As a high-risk business, a high instance of chargebacks can also be extremely damaging for your payment processing reliability, but you don’t have that problem with us. We’ve designed our merchant accounts to deal with the challenges that you face every day. We can also help you develop strong ecommerce chargeback prevention strategies to overcome the fraudsters who prey on your line of business. 

When Criminals Take Over Your Account

One of the most troubling types of fraud is when a fraudster takes over your account. This has increased over the last few years. In 2023, around 28.7% of all global fraud instances were down to third-party account takeover. 

Additionally, from 2021 to 2022, there was a 131% increase in account takeover attacks. That’s a substantial amount and it’s a trend that continues. It shows that fraudsters aren’t only interested in stealing your card number, they want your entire account and will use stolen information and passwords to get it. 

This is also one of the hardest types of fraud to detect because, from the outside, it looks legitimate to a card company. And if you’re not checking your account regularly, you wouldn’t know. And do you want to know something really worrying? A 2021 report found that average losses from this type of fraud were almost $12,000 per case. 

Mobile Payments Under Attack

These days, we often make payments through our phones, and fraud trends reflect this. Mobile commerce fraud has increased in line with our habits, and criminals are targeting affected mobile wallets and payment apps with ease. 

In 2022, the mobile credit card fraud rate was 47%, increasing to a huge 61% in 2023. So, the more we use our phones to make payments, the more fraudsters choose to pivot their tactics and steal our money.  

Old-School Fraud Still Happening

While advances in technology have meant more sophisticated credit card fraud types, that doesn’t mean the old-school options have disappeared. Skimming devices and counterfeit cards are still key threats to be on the lookout for. 

Skimmers: The Hidden Threat

First, what is skimming? This happens when a fraudster uses a device called a skimmer to capture data from your credit or debit card. It’s placed inside or on an ATM, gas pump, or a POS terminal. Then, when you swipe your card or insert it, the skimmer records the data and the fraudster can access it. From there, they can clone your card and make unauthorized purchases. This is a very dangerous type of fraud because you don’t even know it’s happened until you see transactions on your statement that you didn’t make, often resulting in huge amounts. 

As recently as 2022, an American Bankers’ Association report showed that skimming grew by almost 500%, and there are signs it will continue in this direction. As you can see, credit card skimming statistics are quite worrisome even with the newest technology around. 

You might wonder where to be on the lookout for these devices. Well, ATMs are a classic spot, but gas station pumps are thought to be one of the most common places. These are unstaffed much of the time, and it’s easy for anyone to access the card reader. 

Debit Cards: Higher Stakes, Faster Access

Aside from the old school types of fraud, we can also talk about debit card fraud statistics. It’s not all about credit cards. In 2024, debit card fraud was responsible for 39% of all fraud-related losses at US financial institutions. So, while the debit card fraud statistics might not get the same headlines as credit card fraud, it’s still a very damaging situation. 

In fact, in 2023, more than 315,000 debit cards were affected by skimming, a large increase from the year before. In this case, criminals get instant access to your funds, potentially causing a world of damage to your immediate cashflow. In this case, there’s no credit buffer to help you as there is with credit cards – it’s your actual money disappearing potentially before your eyes. 

Identity Theft: The Gateway Drug to Fraud

You’ve no doubt heard a lot about identity theft in the news; it’s been high on the agenda for a long time and that’s for good reason. When criminals get easy access to your personal information, they can then use that to open new credit cards and agreements in your account. By the time you find out about it, you’re already hugely in debt. 

In 2023, credit card fraud on a new account was responsible for 45.7% of all types of identity theft. 

This type of fraud is particularly challenging because it can be very difficult to prove and can take months or even years to actually resolve the problem. These fraudulent accounts also show on your credit report, and until the issue is fixed, it can affect your ability to access credit when you need it. 

Technology Fighting Back Against Criminals

We’ve talked a lot about credit card fraud statistics, and it’s clear that it remains a serious problem. So, what can we do about it? Thankfully, technology is giving us plenty of armor to fight back against criminals. 

AI and Machine Learning Revolution

AI is changing how we do many things, including how we spot potential instances of fraud. This is down to AI-powered fraud detection systems which can analyze huge amounts of data and patterns within seconds. They look at user behavior and risk indicators in real-time and alert you to any suspicious activities with high levels of accuracy. They’re able to reduce false positives while turning your attention to where it needs to be the most. 

The good news is that these fraud detection systems learn as they go, so they become more accurate over time and they’re able to adapt and stay ahead of criminal strategies. 

Of course, if you spend your time investigating false positives, you run the risk of missing something important. Not to mention the fact that you’ll upset customers that are entirely legitimate. Studies have shown that while traditional fraud detection strategies hit an accuracy rate of between 60-70%, new AI systems can achieve rates closer to 95-98%. 

Fraud Prevention Checklist for Consumers

While working with the latest technology to help spot potential fraud, it’s also useful to know a few extra strategies. Below, you’ll find a checklist to help keep you safe from fraudsters. 

Monitor Your Accounts:

• Check credit card statements weekly
• Set up account alerts for all transactions
• Review credit reports quarterly
• Use credit monitoring services

Secure Your Information:

• Use unique passwords for financial accounts
• Enable two-factor authentication
• Avoid public Wi-Fi for financial transactions
• Keep software and apps updated

Shopping Safety:

• Verify website security (https://)
• Use contactless payments when possible
• Avoid saving payment info on websites
• Be cautious with email links and attachments

If Fraud Occurs:

• Contact card issuer immediately
• File police report for large amounts
• Report to FTC at IdentityTheft.gov
• Document all communications

Final Thoughts

Let’s be honest, as long as there’s the opportunity to steal money, there will always be fraudsters. And the worrying thing is that credit card statistics consistently show an uptrend in these nefarious practices. Criminal strategies are becoming more sophisticated, in-depth, and harder to spot. Yet, we have powerful AI systems that can help us spot potential fraud before it turns into a major headache. 

Throughout this guide, we’ve talked at length about some surprising numbers. Many of them may have surprised you, but that’s exactly what they should do. By helping you understand the real problem, and the true credit card fraud rate, your attention will turn to prevention rather than cure. Ultimately, it’s about being proactive rather than reactive, and that’s what we can help you to do at PayCompass. 

We can help protect you from fraud with our smart, advanced technology that’s tailored to your needs. Our dashboard is clear, intuitive, and easy to use. With real-time transaction monitoring, built-in fraud protection, and chargeback prevention measures, you’re almost one step ahead of the fraudsters. And of course, we’re always on hand to help should you have any questions or concerns. 

We’ve designed our services with your needs in mind, particularly as a high-risk business. We know that you face a higher instance of fraud compared to companies in other risk classification brackets. But that doesn’t mean you have to lie down and accept fraud. Instead, it’s about putting measures into place that gives you a strong layer of defense. So, if you’re ready to safeguard your business and your customers, reach out to us today and let’s work together to derail fraudsters and their criminal tactics.