Sunday , August 1 2021

Chile is below the world average and Latin America in card fraud

Chile will be among the countries with the lowest index of fraud in bank transactions compared to Latin American countries and also around the world, according to ABIF's latest financial report.

The number of transactions made with bank cards doubled on average every three years, and the amount is traded every four years. Bank cards have become the most widely used digital payment facility in Chile and have exponentially replaced cash.

Despite the growth of this method of payment, the fraud rate in Chile reached 3.4 basis points (pp) during the first quarter of 2018, ie for each tranche of $ 100,000, only $ 34 is equivalent to fraudulent transactions.

By comparison, Chile is positively positioned against the Latin American (13.5 pp) and the global (11.3 pp) average. It even shows a downward trend, reducing the rate of fraud by 1.2 pp. compared to the fourth quarter of 2016 (4.6 pp). This contrasts with an increase of 1.5 ppt. in the world over the same period.

Among the measures the local bank has promoted to prevent fraud is the massive implementation of the EMV chip in cards and readers, the installation of magnetic disturbances at ATMs and the development of fraud detection and early warning algorithms, among other technologies, ABIF warned in its report.

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