Those who make extensive use of credit card processors are most likely already aware of the myriad dangers that can target cardholders. Information from a recent report presented by the analytics company Javelin Strategy & Research suggests that those who are informed of a breach have a sizable chance of being victimized by fraud.
Spanning the last decade, the study polled more than 48,000 people. According to an interview conducted with one of the firm's analysts, Alphonse Pascual, for Bank Info Security, 33 percent of those surveyed were given enough notice by their bank to stop fraud on their cards. But that doesn't erase the other number, which emphasizes how important it is for those struck by such fraud incidents take quick action to prevent their financial security from being further compromised.
"The correlation of being notified of a data breach and actually suffering a certain type of fraud is very, very strong," Pascual said. "If you receive notification that your credit card number has been breached, the incidence rate for that particular population is 28 percent, when we talk about existing credit card fraud. For all consumers, it's only 3.1 percent. That's almost nine times greater."
The article also referenced the massive breach that affected the South Carolina Department of Revenue last year, an event that compromised 387,000 credit cards, as well as millions of Social Security numbers.
Though this may not seem like a surprising statistic, it does indicate a growing necessity for proper fraud prevention measures. Merchants and other companies making use of card processors have a responsibility to do what they can to fight the possibility of illicit use, and they can take steps towards that goal by seeking out systems that keep safety as a top priority.