Despite the fact that fraudulent losses amount to only $0.05 per $100 in credit and debit card transactions, consumers have an obvious and increasing fear of fraud – particularly the digital variety. Identity theft and hacking are actually Americans’ two biggest fears, according to a recent Gallup poll, reflecting the toll recent data breaches have taken on our cultural psyche.
Fear of fraud has unfortunately been known to influence consumer banking and spending habits, often dictating which payment vehicles we use and, in extreme cases, fostering a debilitating level of paranoia that makes operating within the modern banking system impossible. But is it really something we need to worry about? And, if so, how worried should we be?