Fraud is a significant and mounting problem for global economies made worse by non-cash methods of payment, according to new research.
The global economy currently loses US$4.1 trillion annually to fraud.
The data suggested a dire warning: societies must support cash to counterbalance rampant electronic payment fraud.
Fraud in Cash and Electronic Payments: Taxonomy, Estimation and Projections, a new study completed for the International Security Ligue, found that fraud with cash fell by 1.7 per cent annually, while fraud with cards has risen by 16.2 per cent every year since 2014.
If current trends persist, card fraud per transaction will more than double by 2025.
“Cash is always important to support consumer options,” said Steven Meitin, President, Canadian Association of Secured Transportation (CAST).
“However, this research shows that cash is also important to governments, businesses and central banks to help counter fraud. Criminals see more opportunities as more people rely on technology, which is why different payment forms should remain a primary concern for consumers and governments,” Meitin added.
Key Statistics from the study said card-not-present fraud is the fastest growing (6.44x larger in 2018 than 2014) and constitutes more than half of total card fraud.
ATM-related card counterfeiting increased during the study period (2.87 times more in 2018 than 2014).
The illegal global economy linked to cash declined from 5.2 per cent of gross domestic product (GDP) in 2014 to 4.8 per cent of GDP in 2018 and is expected to fall by 10.4 per cent by 2025.
The purpose of the Canadian Association of Secured Transportation (CAST) is to promote and advocate for the interests of Canadian providers of secure transportation of valuables, to provide a venue for beneficial dialogue amongst members and to encourage the advancement and excellence of industry standards across Canada and abroad.
CAST is the Canadian member of the International Security Ligue. To learn more, visit www.cast-acts.ca.