Payment cards, in the modern world, have not only gained popularity but have also become the fundamental method for online and in-person purchases. Because of the fame of payment cards, the market for debit and credit cards is expanding in a consistent manner. In accordance with the Census Bureau of the United States, debit and credit cards have increased significantly in numbers. With their usage, number of attacks on them has also increased. The same can be said about the UK as well. With the expansion of payment cards, the amount of fraud associated with them has also increased (Finance, 2019). Generally, fraudsters have adopted an organized approach and are utilizing sophisticated techniques of misusing and obtaining financial and personal information of consumers. Other than just direct losses, decrease in the confidence of consumers can affect the reputation of brand because of fraud. Consequently, card issuers and financial institutions are consistently seeking innovation and new methods in the prevention and detection of payment card fraud (Moneyadviceservice, 2019).

Financial and technological innovations in the industry of payment influence the payment vehicle choice of customers by providing more convenient methods and techniques of payment. Now, consumers tend to utilize electronic methods of payment which exceed almost three-quarters of payments of non-cash. More than sixty percent of such payments have been made through debit or credit cards. In general, a recent study by Federal Reserve determined that payments through cards have exceeded the payments which are made in person by people (Raj & Portia, 2011).

With an evolution in the spending behavior of consumers, the international market for cards has grown significantly in the recent years. Cards are quite convenient and useful for customers, accepted widely by a large number of merchants, and it is also an efficient method of payment. The reason why payment cards are generally preferred more by consumers is that they are convenient. It has been revealed that every single second around the world, over 10,000 payments are being made through cards. Moreover, it has also been determined that existing users of credit cards are predicted to rise in the coming years. The reason why figures are expected to increase is that they are quite convenient and provide an efficient way of transferring or paying the necessary amount (Actionfraud, 2019).

Meanwhile, innovation occurring in payments had resulted in significant efficiency and convenience. New technologies have created complexity and have also introduced new factors or risk presented by new technologies and providers. As cards have become the fundamental method payment in retail transactions and payments, they have also become quite an enticing target for hackers and criminals. Fraud associated with payment card exhibited ever since cards were introduced into the system of payment. As the market of card has expanded significantly in the recent years, the level of fraud related to payments cards has also increased. Each and every year, this type of fraud causes a loss of billions of dollars, and the figure is only increasing with time (Nga, et al., 2011).

In accordance with a report, it has been determined that fraud associated with card payments costs more than 8.6 billion dollars every year. 0.4 percent of 2.1 trillion dollars in card volume, this figure is quite a troubling sector for the industry because of its volatile nature. Other than actual losses in the finance, fraud associated with payment cards also affects the confidence of consumers in electronic systems and organizations. For instance, it was stated by Visa in its report that an increase in illegal and fraudulent activities could not only influence their reputation but could also cause significantly losses.

The prime fear of UK consumers is fear related to debit and credit card. In general, concerns about fraud are significantly greater than that of health viruses, terrorism, and personal safety. Payment card fraud is actually associated with identity fraud. Generally, identity thefts take place when the personal information of someone is stolen by another person without any type of permission. In other words, it is the misuse of information which is normally taken from another person without his or her permission for making payments, attempting to obtain services, and creating accounts. That is the reason why fraud of payment card can be simplified as personal information’s misuse which is obtained by a person in the absence of his permission. Modern fraudsters are experts who utilize thorough ways of obtaining different cardholder details. With time, new methods of attack are being developed by criminals through the use of sophisticated methods (Chaudhary, et al., 2012).

It has been determined that different models similar to business models are employed by criminals: databases which resemble credit bureaus and time-sharing operations of the database through different websites which offer access to stolen information for a specific fee. Actually, card fraud is undoubtedly a serious issue for the industry of payment and financial institutions face different issues related to payment and a search issue for effective measures to prevent the fraud in order to minimize reputational damages and associated costs.

References of  what extent does payment card fraud affect the UK users?

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