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Statistics and Credit Card Fraud Facts

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There are a number of credit card fraud facts and statistics that highlight the growing danger of this type of crime. With estimates that suggest the average victim of identity theft spends 330 hours cleaning up their credit, it’s no wonder that there is so much interest in the topic. Review credit card fraud facts to learn about the most common methods of theft and who is most likely to become a victim.

Growth of Credit Card Fraud

A recent Unisys Security Index survey suggests that fear of credit card theft is the number one fear of Americans. Unfortunately, it is estimated that this fear becomes a reality for 11.1 million individuals each year. Of all types of identity theft, the Federal Trade Commission (FTC) estimates that credit card fraud is responsible 26 percent of the time. This makes stolen credit card information the number one source of identity theft.

In total, stolen identities through credit card theft result in $500 million in damages every year. On a state-by-state comparison, the state with the highest number of fraud complaints per 100,000 people is Arizona. Other states with high ratios of fraud include California, Texas, Nevada and Florida.

How Credit Card Theft Occurs

Credit card cloning is the most common form of credit card theft, accounting for approximately 37 percent of all cases. Cloning involves swiping a legitimate card with a skimming device to save the data stored on the magnetic strip. The data is then transferred to a dummy card.

Lost or stolen cards result in 23 percent of all credit card frauds. No-card fraud – the use of stolen credit card numbers – makes up another 10 percent of all cases. Non-receipt fraud – stealing new cards from the mail – is another hazard that accounts for seven percent of fraud instances.

Positive Credit Card Fraud Facts

While credit card fraud facts indicate that such types of fraud are on the rise, improved reporting procedures have reduced the amount of time needed to resolve fraud cases. As of 2010, direct fraud resolution with credit card companies and other entities is estimated at 21 hours. This figure is down 30 percent when compared to previous years. Additionally, more victims are choosing to file police reports following theft – a fact that has led to a doubling in reported arrests following fraud cases.

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