NAPLES, Fla.—Replacement cards do not always allay consumers’ fears following a data breach, according to a new study that shows breaches can have an ongoing negative impact on card usage.
A new global fraud study from ACI Worldwide and Aite Group shows that 40% of consumers who received replacement cards as a result of a data breach or fraudulent activity use their replacement card less than they used their original card, resulting in lost interchange and interest revenue from decreased usage
The report shows that this “back of wallet” behavior is especially prevalent in Asia-Pacific countries: 69% of consumers in Indonesia opt to use cash or an alternative payment method over credit or debit card following the card fraud incident.
Other study findings:
- 14% of consumers globally lack confidence that their financial institution can protect them against fraud, an improvement from nearly 20% in 2014.
- One out of every 5 consumers changed financial institutions due to dissatisfaction after experiencing fraud.
- 17% of debit and credit cardholders cite having experienced fraud multiple times during the past five years, compared to 13% in 2014.