PYMNTS Intelligence data details the ongoing appeal of debit cards as a preference for daily expenses, for convenience and a way to spend cash rather than knocking on credit (and increasing monthly debt burden).
Data show that the likelihood of using a debit card is 67% higher than the grocery credit limit. 39% of consumers use a debit to pay for their recent retail purchases, while 30% of credit is used.
Just like the personal favor of the borrower… this is also the favorite of fraudsters. As a result, banks are losing money for fraudsters, but they are barely stationary and are using advanced technology to enhance their defense capabilities. Paper inspection? Well, those ancient pipelines of bank account data and personal information are also the best choice for criminals, but the continuous transfer of currencies moving across digital channels has put people on the hope of cheating.
Fraud attempts and the rise in losses
A new Fed report estimates that last year, debit cards were one of the most targeted payment methods for fraud, as about three-quarters of financial institutions (FIS) said debit cards were the most common fraud attempts and dollar losses compared to the previous year. The annual Fed Financial Services Agency Risk Official Survey also said the number of losses due to check fraud increased by 10%. Overall, debit card fraud is 39% of the fraud loss caused by payment types, followed by 31% of check fraud.
“In addition to scams and challenges of M sub-accounts, traditional traditional fraud methods (such as forgery, forgery, stolen emails and imitation of authorized parties) are considered to be the main fraud,” the report revealed.
Research conducted in collaboration between PYMNTS Intelligence and Hawk shows that financial institutions report 43% of fraudulent transactions in authorized fraud. Hawke said this week it has raised $56 million in new funding to enhance its artificial intelligence (AI) anti-fraud technology to help banks fight financial crime. Elsewhere, PYMNTS Intelligence is used in conjunction with Arculus to discuss the rise and appeal of Tap to-phastenticate metal cards that use embedded chips to authenticate users when mining on smartphones.
Data show that fraud based on stolen certificates accounts for 41% of all fraud cases, which in turn helps to boost the attack wave, as well as the success of these attacks – detailed in the Fed study above. PYMNTS Intelligence and Arculus found that nearly 90% of FIS reported an increase in credential-based fraud over the past year, highlighting the weaknesses of current authentication methods. 76% of FIS believe that Tap-paintenticate cards can improve profitability by reducing fraud and enhancing user experience.
Inspectors who check for fraud?
Checking fraud is estimated to cost the economy at least $23 billion, and there are several initiatives that can curb its use. As widely reported, the Trump administration has requested payments through checks or acceptance of check-based payments in the coming months. Especially B2B payments are still soaked in large quantities of checks, which helps 40% of commercial transactions. But INGO Payments and PYMNTS Intelligence in recent research shows that the shift to digital payments helps stop the trend (and other benefits) as digital treasury processes improve cash flow forecasts.
However, adoption of instant payments has seen a significant increase in the company, with 77% of respondents leveraging the technology in 2024, up from 62% in the previous year. Fed research noted that instant/real-time payment fraud attempts and losses fell 3% in 2024, noting that “instant payment fraud attempts and currency losses are reportedly negligible.”
