There was a lot of buzz around this year’s Federal Reserve Bank of Chicago’s
Payments Conference, “Payments Fraud: Perception versus Reality”.
First, there’s the sheer numbers involved. For example, it is estimated that
each year $3.5 billion worth of chargeback losses occur in the USA through
fraudulent transactions, according to Orbitz.
Bruce Cundiff of Javelin Research had some particularly interesting stats,
that show identity fraud is on the decline in the USA from 10.1 million cases in
2003 to 8.1 million today, with the cost reducing 12% during this period from
$56 billion to $45 billion. Ouch! $45 billion losses through identity fraud is
still pretty steep, with the average amount defrauded in each case coming in at
just over $5,500.