If you have never experienced credit card fraud or had a chargeback on your merchant account, you should consider yourself lucky. Credit card fraud is a huge and growing problem, especially in the US and Canada.
Global losses to credit card fraud rose to $27.85 billion in 2018, up 16% from 2017. One-third of these losses happens in the US and about $800 million in Canada. And as large scale data breaches continue, some estimates suggest that up to 80% of credit cards are compromised.
But still a large portion of small business owners overlook their individual risks. In fact, a full 48% of small- to mid-sized business owners don’t think their businesses are large or relevant enough to get targeted by an online thief, according to fraud prevention expert Emailage. But the facts dispute this belief.
As the chip card has improved card present fraud, the focus has been on card-not-present fraud, which has seen a large increase. A Juniper Research study found that retailers might lose $130 billion or more from card-not-present fraud from 2018-2023.