Prepaid Card Fraud: An Industry Primer


Over the past few years, the popularity of prepaid cards has skyrocketed as consumers seek alternatives to checking accounts and credit cards and as the unbanked/under-banked population attempt to handle their finances in a more efficient manner.

According to the Nilson Report, the top 50 largest U.S. banks and credit union issuers of general purpose reloadable (GPR) prepaid cards accounted for $118.09 billion in spending at merchants in 2013 (the last year for which figures are available), up by 6.1 percent from 2012.

Mercator Advisory Group has pegged the amount of money loaded on GPR cards as having almost tripled between 2008 and 2012, rising to $76.7 billion. That number is expected to rise to $168.4 billion by 2015. But with such growth comes the challenge of the phenomena known as prepaid card fraud.

Here is what you will learn in this white paper:

  • Understanding Prepaid Card Fraud
  • Skimming: The Most Common form of Prepaid Card Fraud
  • Counterfeit Barcodes
  • Misdirection Fraud
  • Cyber-Attacks
  • Reg. E Error Resolution
  • Prepaid Fraud Controls
  • Prepaid Fraud Controls
  • Tamper-evident/Tamper-resistant Packaging
  • Customer Approval Controls
  • Additional Identity Theft Control
  • ‘Money-On’ Controls For Tax Deposits And Benefits
  • ‘Money-On’ Controls For Card Re-loads
  • ‘Money-Out’ Controls On Prepaid Card Spending

Prepaid card fraud is not only a real phenomena, it is packing a significant financial wallop. Download our Prepaid Card Fraud White Paper to learn how you can keep your products secure.

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