Visa Reports Card Fraud Drops to Record
Anti-Fraud Programs Produce Dramatic Results
SAN FRANCISCO, Feb. 16, 1998 - Visa U.S.A. reduced fraud on its credit
and debit cards to a record low in 1997, a company official reported today.
Card fraud averaged only .08 percent of volume in 1997 or eight cents out
of every $100 spent. That is nearly two and a half times lower than at
its peak in 1992-1993 of .19 percent of volume and considerably lower than
the 1996 level of .11 percent of volume.
The overall rate of growth in fraud has also been declining as total
payment service volume has grown. For the
four quarters ending March 1997, fraud grew 10 percent. By June 1997,
fraud growth had slowed to 8.1 percent,
and in the four quarters ending September 30, 1997, fraud growth was
just 6.4 percent. Visa U.S.A. annual total payment service volume reached
$504.9 billion through September 30, 1997.
"There is no single, simple solution to the complex problem of card
fraud," said Bill Stewart, Executive Vice
President of Visa, U.S.A. "Visa has been aggressive in designing and
implementing many effective programs to
reduce fraud and protect its members, cardholders, and merchants,"
Visa has successfully reduced fraud every year since 1993. The consistent
decline is credited to three primary
anti-fraud programs the company has implemented.
In addition, in 1997, Visa reduced liability to consumer cardholders to
zero if they reported unauthorized
Card activation programs administered through Visa's member financial institutions
keep newly-issued cards inactive until intended cardholders activate them,
reducing the incidence of fraudulent charges on cards stolen from the mail.
Address Verification Service acts as a "clearinghouse" to flag fraudulent
addresses, reducing "identity theft" scams on credit cards.
Visa's Cardholder Risk Identification Service (CRIS) employs neuralnetwork
technology (artificial intelligence) to identify suspicious purchase patterns,
reducing fraud from lost or stolen cards.
transactions within two business days. This "zero liability" policy
was created, in part, to reduce the time
available for fraudulent activity.
"Visa U.S.A has made card security a priority," Stewart said. "While
we've pushed fraud to a record low, Visa will
keep working to eliminate card fraud. Consumers can join in this effort
by treating their Visa card like a thousand
dollar bill and by following some basic tips," he added.
Visa's recommended consumer safety tips include:
Carry your cards with you when you travel. Never leave your cards in a
Make a comprehensive list of all your cards and their numbers and store
it in a safe place (not your wallet);
Report lost or stolen cards to the issuing financial institution immediately;
Sign the back of your card as soon as you receive it;
Never write your personal identification number (PIN) on your card or keep
it in your wallet;
Always retrieve your credit card receipts; and
Review your periodic bank and credit card statements carefully and report
any suspicious charges or unauthorized transactions immediately.
Visa is the preferred payment brand and the largest consumer payment
system worldwide. It plays a pivotal role
Malin Jennings, 202-828-8870, for Visa U.S.A.
Web site: http://www.visa.com
in advancing new payment products and technologies to benefit its 21,000
member financial institutions, their
cardholders, and the global economy. Visa is the only consumer payment
system to facilitate $1 trillion worth of
purchases of goods and services in a fiscal year. Visa's nearly 600
million cards are accepted at more than 14
million worldwide locations, including 380,000 ATMs in the Visa/PLUS
Global ATM Network. Visa's Internet
address is www.visa.com.
Back to 1998
& Pricing| Viewpoint
Please contact Hotel.Online
with your comments and suggestions.