MINNEAPOLIS (12/29/14)--The amount of payments fraud and the losses incurred continue to concern financial institutions and non-financial firms alike, according to the recently released 2014 Payments Fraud Survey from the Federal Reserve Bank of Minneapolis.
Of the top three payment types, signature debit was the top when it came to fraud attempts, with 87% of financial services firms ranking it as the most common target of fraud attempts. Checks and PIN debit were significantly lower at 57% and 54% respectively.
The biennial survey tracks fraud trends for payment types such as checks, cash, debit and credit cards, automated clearinghouse transactions and wire transfers.
Financial services firms also identified signature debit as having the highest loss rate in value and volume compared with other payments. Signature debit had the highest loss rate based on volume at 67%, and at 78% it had the highest loss rate based on value of the fraudulent transaction.
Seventy percent of financial services respondents experienced fraud losses in 2013, while only a quarter of non-financial companies reported losses.
Non-financial companies cite checks as the highest contributor to payments fraud losses.