The 2012 Annual Card Issuers' Safety Scorecard from Javelin Strategy & Research found that safety for credit card users has fallen year over year - criminals find it easier to compromise important banking information. However, banks are also getting better at detecting problems when they happen, stopping fraud before it affects a user's balance.
Since 2010, credit card fraud is up 87 percent. Some of the surge in credit card fraud is attributed to the economy - fraud is big business for people unable to earn a living legally. This year, banks will lose as much as $6 billion to credit card fraudsters.
Consumers are Safe
Thanks to pro-consumer, anti-fraud laws, an individual is only accountable for up to $50 in liability per-incident. Most credit card companies hold individuals to zero liability, meaning even if the bank is exposed to $10,000 in fraud, a customer owes nothing on the loss.
The annual report also reports the most and least safe banking institutions. Bank of America was ranked best in the survey overall, and number one in fraud prevention. Capital One was found to be the best credit card company for detecting credit card problems.
Bank of America, American Express, Discover, and BB&T were tied for the best resolution of fraudulent cases. Of all the statistics in the report, resolution as arguably the most important. Quick resolution of problems makes credit cards and debit cards available immediately after the fraud is found and eliminated.
Credit card issuers use spending history and past data to determine which payments are most likely to be fraudulent. Some banks have turned up the pressure - stopping payments when the card is used more than one hundred miles from a person's billing address. Data and prevention measures like these enable banks to catch fraudsters before large transactions are completed.