NEW YORK--(BUSINESS WIRE)--SmartMetric, Inc. (OTCQB: SMME) says the alarming increase in fraud notifications has a significant impact on consumers trust in institutions issuing credit cards. This is born out in the how consumers' use of cards changes as a direct result following a card fraud incident.
According to an ACI Worldwide Impact Report – Global Consumers: Losing Confidence in the Battle Against Fraud: “After experiencing fraud, 63 percent of consumers use their card less, at least in some situations, than they had previously.”
Additional research reveals that nearly half of U.S. consumers have experienced card fraud,(1) while another survey found that 56% of fraud victims changed their card use or shopping behavior after a fraudulent charge.(2)
This shows a seriously heightened concern by credit card users while also revealing a serious business cost for Banks above and beyond the direct cost of fraud losses. The cost to Banks of lost card transaction business from their card holders even after a card is replaced following a fraud incident is a serious hidden cost for card issuing Financial Institutions.
"The ongoing direct losses due to card fraud along with the substantial hidden costs of lost business, highlights the benefit to card issuing Banks and consumers alike, from the adoption of a safer biometric based credit card. Not to mention the fact that a biometric credit card adopted by card users for a more secure card experience would become the top-of-the-wallet card garnering the majority of the card holders card transactions," said today SmartMetric's President & CEO, Chaya Hendrick.
SmartMetric is the creator of the in-the-card fingerprint scanner for chip credit cards. It uses a SmartMetric developed miniature and super thin fully functional fingerprint reader that sits inside the credit card. The biometric reader is used to turn on the card's surface chip following a fingerprint match and prior to being inserted into card readers or ATM's.
According to a research report by Javelin Strategy and Research titled “The 2018 Identity Fraud Study” nearly 1/3 of United States consumers were notified of a breach in 2017, an increase over the previous year, which was 12% of consumers.
The impact of almost constant news in the media is having on consumer sentiment is shown by the research showing a marked increase in consumers concerned about fraud. Of the general population in 2016, 51% were concerned about fraud. This figure rose in 2017 to 69% of the general population. SmartMetric commissioned a consumer research survey which found amongst Visa credit card holders 80% are concerned about credit card fraud. This clearly demonstrates consumers who actually own and use a credit card are more concerned about fraud than the general public.
SmartMetric is the pioneer of in-card biometrics, having spent over a decade in developing an extremely thin miniature fully functional fingerprint scanner that is less than a 1/3 the thickness of a standard credit card. Its biometric credit card meets ISO and industry standards for credit card thickness and size, allowing it to work in existing retail card readers and ATM’s.
SmartMetric is the developer of Biometric Credit Cards that use the SmartMetric inside-the-card biometric fingerprint scanner to lock and unlock the credit card. The SmartMetric solution overlays biometric protection on top of the credit card chip card technology. There are now more than 7 Billion chip payments cards issued globally.
SmartMetric biometric cards are available to Banks in the United States through SmartMetric’s industry distributor, PROTEC. PROTEC Secure Card (PSC) based in New Jersey, have years of experience in the Credit Card industry both in the USA and Latin America. PSC is an established Visa, MasterCard and Discover certified credit card manufacturer that specializes in advanced high-quality credit card production for card issuing Banks in the United States along with Central and Latin America. The company is a leader using the most updated equipment and technologies in their secure production facility.
To find out more about the SmartMetric biometric card solution please visit the company site at www.smartmetric.com
To view the SmartMetric Biometric Card please follow this link - Video of the SmartMetric Biometric Card
*ACI Worldwide Impact Report – Global Consumers published in 2014 - https://www.securitymagazine.com/articles/85684-credit-card-fraud-impacts-consumer-confidence-worldwide
1. ACI Worldwide and Aite Group. Global Consumer Card Fraud: Where
Card Fraud Is Coming From; infographic/summary and full report; aciworldwide.com/fraud-survey/results
2.
Tender Armor. CNP Fraud Consumer Impact: Anxiety That Reduces Credit and
Debit Card Usage; cvvplus.com/wp-content/uploads/2016/04/CNP-Fraud-Consumer-Impact-Study.pdf
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