Credit Card fraud and theft is a particularly American problem. The 2020 Nilson Report showed that one third of all global credit card losses occurred in the US. Not only that, almost 7% of card transactions in the US were fraudulent.[1]
The following study was conducted to help US credit card consumers become aware of this problem and better determine the credit card that's right for them.
Riskiest Credit Cards for Fraud - Table of Contents
Executive Summary: Ranking of Major Credit Cards by Fraud Risk
This Debt Reduction 101 report presents a comprehensive analysis of billions of Google searches to reveal the top US credit card companies where customers seek help with fraud to help consumers understand which credit cards may be more secure than others.
The ranking of the "riskiest" major credit cards, based on reported fraud density©, a metric which accounts for transactional volume, is as follows:
- US Bank
- Citi
- Bank of America
- Capital One
- Discover
- Wells Fargo
- Chase
- American Express
Introduction
Credit Card fraud and theft is a particularly American problem. The 2020 Nilson Report showed that it led to $28.65 billion in losses around the world, with over one third of the losses centered in the US. Statistics found that almost 7% of card sales in the US were fraudulent, predicting that total global losses will reach around $32.96 billion by 2023.[1]
58% of stolen credit cards on the dark web come from the United States, according to a NordVPN study analyzing about six million stolen payment cards on the dark web.[2]
The massive bulk of credit card debt originating in the United States means we are in the crosshairs, and consumers need information to protect themselves. Understanding the data behind fraud is crucial for informed decision-making by consumers.
Methodology: Fraud Density
This study utilized data from billions of Google searches, specifically focusing on keyword volume for including search terms including "fraud," "fraud department," and "fraud phone number". This search data was then cross-referenced to and weighted against data from The Nilson Report's most recent data of largest credit card companies.
This step determined fraud density©, of fraud per purchase volume, a trademark metric of Debt Reduction 101, which offsets market share and transactional or purchase volume. Without this metric, the largest credit card companies by purchase volume, by and large, would also be subject to the greatest fraud, by the sheer number of transactions alone.
Various statistical methods, including trend analysis and regression modeling, were employed to interpret the data.
According to The Nilson Report, these were the biggest U.S. credit card companies in 2022 – the most up-to-date data available – by purchase volume.[3] These cards together rang up more than $4 trillion in transactions that year.
- Chase: $1.14 trillion
- American Express: $1.03 trillion
- Citi: $563.4 billion
- Capital One: $534.5 billion
- Bank of America: $480.6 billion
- Discover: $210.7 billion
- U.S. Bank: $190.8 billion
- Wells Fargo: $171.6 billion
Key Findings
 |
| Table 1: Fraud Search Volume Results Analyzed by Credit Card Company Purchase Volume |
The ranking of the "riskiest" major credit cards, based on reported fraud density©, a metric which accounts for transactional volume, is as follows:
- US Bank
- Citi
- Bank of America
- Capital One
- Discover
- Wells Fargo
- Chase
- American Express
Now, let's compare the ranking above to these same companies ranked by size or purchase volume:
- US Bank (7 >> +6)
- Citi (3 >> +1)
- Bank of America (5 >> +2)
- Capital One (4 >> 0
- Discover (6 >> +1)
- Wells Fargo (8 >> +2)
- Chase (1 >> -6)
- American Express (2 >> -6)
Fraud Prevention Trends: This comparison reveals some drastic movement, which, it is believed, represents relative success or failure of preventing fraud. By this comparison, Chase, American Express, and US Bank represented the most drastic shifts up and down the scale. Chase and American Express for the better. US Bank for the worse.
Implications and Recommendations: Best & Worst Credit Cards Based on Fraud Density©
US Bank Credit Cards NOT Recommended: US Bank did not fare well in this study. Despite having one of the lowest purchase volumes among the major US credit cards, US Bank had one of the highest fraud search volumes. This resulted in a high reported fraud density.
Chase and American Express Credit Cards Highly Recommended: Chase and American Express both fared well in this study. Despite having one of the two highest purchase volumes among the major US credit cards, Chase and American Express had some of the lowest fraud search volumes. This resulted in a low reported fraud densities.
Conclusion: Credit Card Vulnerability to Fraud
Based on these results, this study concludes that the highest ranking major credit card companies for fraud density have relatively high fraud vulnerability, meaning that their methods for fraud prevention are in need of improvement.
Conversely, this study further concludes that the lowest ranking major credit card companies for fraud density have relatively low fraud vulnerability, meaning that their methods for fraud prevention are currently effective on a relative basis.
Press Release
The ranking of the "riskiest" major credit cards, based on reported fraud density©, a metric which accounts for transactional volume, is as follows:
- US Bank
- Citi
- Bank of America
- Capital One
- Discover
- Wells Fargo
- Chase
- American Express
US Bank Credit Cards NOT Recommended: US Bank did not fare well in this study. Despite having one of the lowest purchase volumes among the major US credit cards, US Bank had one of the highest fraud search volumes. This resulted in a high reported fraud density.
Chase and American Express Credit Cards Highly Recommended: Chase and American Express both fared well in this study. Despite having one of the two highest purchase volumes among the major US credit cards, Chase and American Express had some of the lowest fraud search volumes. This resulted in a low reported fraud densities.
References
[1] Nilson Report, "Card Fraud Worldwide," Issue 1187, December 2020, LINK
[2] NordVPN, "Tip of the Iceberg: 6M Stolen Cards Analyzed," 2023, LINK
[3] Nilson Report, "Top Issuers of General Purpose Credit Cards in the U.S.," Issue 1236, February 2023, LINK
[4] Mayer, P., Zou, Y., Schaub, F. and Aviv, A. “Now I’m a bit angry:” Individuals’ Awareness, Perception, and Responses to Data Breaches that Affected Them. 30th USENIX Security Symposium (USENIX Security 21): 393-410. LINK
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