CompareCards Survey Reveals More Than 1 in 10 Were Card Fraud Victims, Experienced Card Declines Last Year

CHARLOTTE, N.C., Feb. 27, 2018 /PRNewswire/ -- According to a recent CompareCards by LendingTree survey, roughly 15 percent of card holders have fallen victim to debit or credit card fraud, and 12 percent had at least one card purchase declined in the past 12 months.

Based on the number of Americans with either a debit or credit card in the U.S., and the rate of fraudulent card activity affecting 15 percent of survey respondents, it's possible that 33 million Americans have been victimized by card fraud over the past year.

The number of respondents who had a card purchase declined or experienced card fraud totaled 1,047. This sample was then surveyed in more detail about their experiences.

Fraud can occur even when the card is in the victim's possession.

More than two-thirds (69%) of the victims surveyed said that someone tried to make an online purchase with their account information, even though they had the card in their possession when they first discovered the fraud.

Fraud victims are often the first to find out.

Although the majority of fraud victims said they were alerted to a card breach by their card issuer or credit monitoring service, that's not always the case. More than one-third (37%) of the card victims in the survey first learned about the potential fraud themselves by reviewing their account statements.

Tips for managing card fraud

Initiate a credit freeze, a strong tool against credit card fraud. This prevents anyone from accessing your credit report to open an account (your account can still be accessed for other purposes, such as checking your credit history). It also prevents you from opening any new credit accounts until you unfreeze it.

Place a fraud alert on your credit account after fraud has occurred or if you suspect fraud may occur in the future. A fraud alert is a free service provided by the major credit bureaus. By placing an alert, businesses must try to verify your identity before extending any new credit. You only need to contact one of the three credit bureaus; the one you contact will inform the others of the fraud alert status, which will then apply to each credit reporting agency. The survey found that even after the fraud occurred, only 39 percent of victims said that they placed a fraud alert with one or more of the three credit reporting bureaus. 

Do most of your shopping, especially online, with a credit card instead of a debit card. Maximum liability for fraudulent use of a credit card is $50, and many issuers offer zero-liability as a card benefit, but that protection doesn't extend to debit cards. If someone uses your debit card before you report it lost or stolen, your liability depends on how quickly you report it. If you don't report within 60 days, you have no protection.

More than one in 10 credit and debit card users had at least one card declined in the last year.

The survey also found that 12 percent of credit and debit card users had at least one card declined in the last year. Based on the estimated number of Americans who use at least one debit or credit card, that translates to 26 million people who were turned down for a purchase. 

The most common reason debit cards were declined was due to insufficient funds. Nearly one-third (32%) of debit card users who had their cards declined said they didn't have enough money in their account to cover the transaction. Among credit cardholders, the most common reason was a maxed-out credit card — 39.9 percent said their cards were declined because the cardholders reached their credit limit.

The survey found that the second-most cited reason among credit cardholders (28.7%) and debit cardholders (16.6%) who were declined is that their bank's "fraud protection" service denied the transaction. Fraud detection is a common card feature that temporarily freezes the account if a bank suspects fraud.

For the full report on card fraud, visit: www.comparecards.com/blog/survey-33-million-americans-may-have-been-card-fraud-victims-last-year/.

For the full report on card declines and how to prevent your card from being declined, visit: http://www.comparecards.com/blog/survey-finds-fraud-protection-plays-role-in-card-declines-in-the-us/.

About LendingTree:
LendingTree TREE is the nation's leading online loan marketplace, empowering consumers as they comparison-shop across a full suite of loan and credit-based offerings.  LendingTree provides an online marketplace which connects consumers with multiple lenders that compete for their business, as well as an array of online tools and information to help consumers find the best loan. Since inception, LendingTree has facilitated more than 65 million loan requests. LendingTree provides free monthly credit scores through My LendingTree and access to its network of over 500 lenders offering home loans, personal loans, credit cards, student loans, business loans, home equity loans/lines of credit, auto loans and more. LendingTree, LLC is a subsidiary of LendingTree, Inc. For more information go to www.lendingtree.com, dial 800-555-TREE, like our Facebook page and/or follow us on Twitter @LendingTree.

About CompareCards:
CompareCards' mission is to help people make smarter, more informed, healthier financial decisions based on deeper knowledge of financial offers. Each month, over 2.9 million visitors come to CompareCards' website to independently compare credit cards side-by-side and choose a credit card based on interest rate, reward benefit, cost savings, and other factors that are important to each person. CompareCards provides easy-to-use, objective tools and educational resources that help people do everything from making credit card comparisons to managing their credit health. For more information, please visit www.comparecards.com.

The CompareCards division of LendingTree is based in Charleston, South Carolina and also has an office in the greater Chicago area.

MEDIA CONTACT:
Megan Greuling
704-943-8208
Megan.greuling@lendingtree.com

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SOURCE CompareCards